Wolters Kluwer 2010 First-Quarter Scheduled Trading Update
(Thomson Reuters ONE) -
Alphen aan den Rijn (May 12, 2010) - Wolters Kluwer, a market-leading global
information services company focused on professionals, today released its
scheduled 2010 first-quarter trading update, highlighting solid performance and
reiterating its full-year guidance.
Highlights
* Full-year guidance reiterated.
* Market conditions improving in the U.S., signaling slow and steady economic
recovery; Europe remains challenging.
* Subscription revenues remain strong supported by good retention rates;
Cyclical/transactional revenues stabilizing.
* Online, software and service revenues continued to grow organically in the
first quarter, as customers migrate to innovative solutions.
* Ordinary EBITA margin improved compared to the first quarter 2009,
underpinned by migration of customers to more profitable electronic
products, cost management, and the Springboard program.
* Cost savings from the Springboard operational excellence program on track to
deliver full-year savings of ?125 million.
* Solid financial position reflecting a strong balance sheet with good growth
in cash flow in the first quarter.
Nancy McKinstry, CEO and Chairman of the Executive Board, commented on the
company's first-quarter trading update:
"I am pleased with the strong operating profitability and cash flow that the
company delivered in the first quarter of 2010. We are encouraged to see that
our subscription portfolio delivered solid results and our more
transaction-based revenue streams, such as books, and corporate and lending
products, are showing signs of improvement compared with prior year.
Revenue from online, software, and workflow tools grew well in the first
quarter, particularly in the Health & Pharma Solutions and Tax & Accounting
divisions, as professionals continued to adopt innovative solutions to manage
complexity and improve productivity. This growth has been supported by our
commitment to annually reinvest 8-10% of revenues in new and enhanced products
and platforms.
Ordinary EBITA margin improved over the first quarter 2009, largely driven by
the continued migration of revenues from print to higher margin electronic
products and the benefits of the Springboard operational excellence program.
With a resilient subscription portfolio, improving profitability, and signs of
increasing stability in the transactional elements of our business, I am pleased
to reiterate our full-year guidance for 2010."
Revenue Developments
In the first quarter of 2010, Wolters Kluwer saw a continuation of stabilizing
market conditions that were noted at the close of 2009. Subscription based
revenues, which account for approximately 71% of total annualized revenues,
proved resilient underpinned by stable retention rates. Revenues from electronic
products continued to grow well, while the decline in print revenues moderated
back to levels consistent with long-term historical trends.
While customers continue to be cautious and selective with incremental spending,
the negative trends in cyclical and transaction product lines have begun to
improve, particularly in the U.S. and Asia. Notably, book sales at the Health &
Pharma Solutions division have stabilized, trends in new sales in tax and
accounting software have improved, and first-quarter transaction volumes in
corporate lending and business formation products were better than the prior
year. European market conditions, however, remain challenging, as new sales and
cyclical revenue streams such as training, consulting, and advertising remain
under pressure. Overall sales trends in the face of a slow and steady economic
recovery are consistent with management's expectations.
The increase in complex regulation is one of the long-term trends that provide
opportunities for Wolters Kluwer to reinforce its leading market positions and
provide customers with new products that help manage regulatory compliance. In
the first quarter, Healthcare reform was passed in the U.S., which provides the
Health & Pharma Solutions division with new long-term opportunities to help
healthcare professionals provide more effective and efficient care.
Specifically, products in clinical decision support are aligned with this new
legislation and are performing well in the marketplace. The company also saw
significant legislation related to financial regulation, such as new disclosure
laws, which provided new revenue opportunities within the Financial & Compliance
Services and Legal & Regulatory divisions.
Reiterated 2010 Outlook
Key Performance Indicators 2010 Guidance
Ordinary EBITA margin 20-21%
Free cash flow[1] ? ?400 million
Return on invested capital ? 8%
Diluted ordinary EPS[1] ?1.41 to ?1.45
[1]In constant currencies (EUR/USD = 1.39)
The ordinary EBITA margin is expected to be 20-21% in 2010 with improved margins
underpinned by the migration of revenues to more profitable electronic products,
and the continuing contribution of the Springboard program. These efforts are
expected to offset wage and other inflationary expenditures.
Free cash flow will continue to be strong and is expected to be ?400 million or
greater for the year. Diluted ordinary earnings per share is expected to be
between ?1.41 and ?1.45 in constant currencies.
Solid Financial Position
The resilient portfolio and strong cash generation continue to support a solid
financial position. The company has a strong liquidity position with headroom in
excess of the company's ?500 million policy minimum. Debt was refinanced in
2008 pushing maturities out beyond 2013. The net-debt-to-EBITDA ratio was
reduced in the first quarter in keeping with management's intention to move
closer to its target of 2.5 times net-debt-to-EBITDA over the medium term.
Springboard
The Springboard operational excellence program is on track in the first quarter
to deliver the expected full-year 2010 cost savings of ?125 million. The program
is designed to reduce structural costs, resulting in sustainable margin growth.
Annualized run rate savings estimates are expected to reach ?140-160 million by
2011. Savings are expected to result largely from standardized technology
platforms and consolidated IT infrastructure, streamlined content manufacturing
processes, expanded global sourcing programs, offshore service centers for
software development and testing, and content production and back office support
functions.
As the program represents numerous initiatives, the precise annual phasing of
savings and costs is difficult to predict. However, the following table - as
provided at the 2009 full-year results - represents current estimates.
Springboard summary savings and costs
? millions (pre tax) 2008 2009 2010 2011 Total
Actual Actual Estimate Estimate Estimate
Cost savings 16 84 125 140-160 140-160
Exceptional program costs 45 70 70 35-55 220-240
Benchmark Figures
Wherever used in this press release, the term "ordinary" refers to figures
adjusted for exceptional items and, where applicable, amortization of publishing
rights. Exceptional items consist of qualifying restructuring expenses.
"Ordinary" figures are non-IFRS compliant financial figures, but are internally
regarded as key performance indicators to measure the underlying performance of
the base business. These figures are presented as additional information and do
not replace the information in the income statement and in the cash flow
statement. The term "ordinary" is not a defined term under International GAAP.
About Wolters Kluwer
Wolters Kluwer is a market-leading global information services company.
Professionals in the areas of legal, business, tax, accounting, finance, audit,
risk, compliance, and healthcare rely on Wolters Kluwer's leading
information-enabled tools and software solutions to manage their business
efficiently, deliver results to their clients, and succeed in an ever more
dynamic world.
Wolters Kluwer had 2009 annual revenues of ?3.4 billion, employs approximately
19,300 people worldwide, and maintains operations in over 40 countries across
Europe, North America, Asia Pacific, and Latin America. Wolters Kluwer is
headquartered in Alphen aan den Rijn, the Netherlands. Its shares are quoted on
Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices.
Visit www.wolterskluwer.com
(at)Wolters_Kluwer on Twitter
Wolters Kluwer on YouTube
about our market positions, customer brands, and organization.
Calendar
July 28, 2010 Half-Year 2010 results
November 3, 2010 Trading update
February 23, 2011 Full-Year 2010 results
Full overview available at www.wolterskluwer.com
Media Investors/Analysts
Caroline Wouters Jon Teppo
Vice President, Corporate Vice President, Investor Relations
Communications
t + 31 (0)172 641 459 t + 31 (0)172 641 407
press(at)wolterskluwer.com ir(at)wolterskluwer.com
Forward-looking Statements
This press release contains forward-looking statements. These statements may be
identified by words such as "expect", "should", "could", "shall", and similar
expressions. Wolters Kluwer cautions that such forward-looking statements are
qualified by certain risks and uncertainties that could cause actual results and
events to differ materially from what is contemplated by the forward-looking
statements. Factors which could cause actual results to differ from these
forward-looking statements may include, without limitation, general economic
conditions; conditions in the markets in which Wolters Kluwer is engaged;
behavior of customers, suppliers, and competitors; technological developments;
the implementation and execution of new ICT systems or outsourcing; and legal,
tax, and regulatory rules affecting Wolters Kluwer's businesses, as well as
risks related to mergers, acquisitions, and divestments. In addition, financial
risks such as currency movements, interest rate fluctuations, liquidity, and
credit risks could influence future results. The foregoing list of factors
should not be construed as exhaustive. Wolters Kluwer disclaims any intention or
obligation to publicly update or revise any forward-looking statements, whether
as a result of new information, future events, or otherwise.
[HUG#1415016]
PDF version of Press Release: http://hugin.info/130682/R/1415016/366297.pdf
Unternehmensinformation / Kurzprofil:
Datum: 12.05.2010 - 08:00 Uhr
Sprache: Deutsch
News-ID 20761
Anzahl Zeichen: 0
contact information:
Town:
Alphen aan den Rijn
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 201 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Wolters Kluwer 2010 First-Quarter Scheduled Trading Update"
steht unter der journalistisch-redaktionellen Verantwortung von
Wolters Kluwer NV (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
