Wolters Kluwer 2011 First-Quarter Scheduled Trading Update
(Thomson Reuters ONE) -
Alphen aan den Rijn (May 11, 2011) - Wolters Kluwer, a market-leading global
information services company focused on professionals, today released its
scheduled 2011 first-quarter trading update, highlighting improved underlying
trends and reiterating full-year guidance.
Highlights
* Full-year 2011 guidance reiterated.
* Subscription revenue growth supported by stable retention rates; cyclical
revenue growth turned-positive in Q1 driven by strong performance from
corporate and lending transactions.
* Online, software, and service revenues continued to grow organically and as
expected; the rate of print decline improved from year-end and Q1 2010.
* Cost savings from the Springboard operational excellence program on track to
deliver run-rate savings of ?170-180 million.
* 2.1 million shares purchased in the first quarter for approximately ?35
million.
* Market conditions remain strong in Asia and continue to improve in the U.S.;
trends in Europe are improving, some markets remain challenging.
* Strong financial position reflects a strong balance sheet with solid cash
flow in the first quarter.
Nancy McKinstry, CEO and Chairman of the Executive Board, commented on the
company's first-quarter performance:
"The company delivered results that were in line with expectations for the first
quarter. Growth of higher value online and software products drove positive
performance in our subscription revenues and continues to support the
transformation of our portfolio. In addition, we continue to enlarge our global
footprint by extending products beyond their current markets and aggressively
pursuing opportunities in emerging markets. We are confident we will deliver on
our expectations for the full year."
Revenue Developments
In the first quarter of 2011, Wolters Kluwer saw a continuation of the trends
noted at the close of 2010. Subscription-based revenues, which account for
approximately 72% of total revenues, had positive growth, underpinned by stable
retention rates. Revenues from electronic products continued to grow in each
division, while, as expected, the rate of decline in print revenues moderated to
mid-single digit levels. While customers remain selective with new spending,
cyclical product lines returned to growth over the quarter. Cyclical revenues
associated with M&A and lending activities grew well, while revenues related to
pharma promotion, advertising, and training remain pressured.
The Legal & Regulatory division showed relative improvement in the first
quarter, with market conditions in the U.S. recovering at a faster rate than in
Europe. U.S. Legal had positive organic growth driven by good online and
software growth. Double-digit growth in transactional revenue in Corporate Legal
Services highlight continued strength in corporate and lending activity across
the U.S., while print sales and other cyclical revenues (advertising, training,
consulting) across Europe remain pressured.
The Tax & Accounting division continued to see good growth in tax software,
driven by accounting professionals' strong emphasis on productivity. While
overall publishing remains pressured, underlying indicators, such as the rate of
print decline and retention rate of subscriptions, showed improvement. These
positive trends are negatively impacted by reduced volumes of tax transactions
and timing of bank products.
The Health & Pharma Solutions division is performing in-line with expectations,
with strong growth in electronic products fueled by double-digit organic growth
in the Clinical Solutions business. Going forward, Clinical Solutions will
extend its leading positions in this high growth market through recently
announced strategic acquisitions of Pharmacy OneSource in Q4 2010, Medicom in Q1
2011, and Lexi-Comp, which is expected to close in Q2 2011. This expansion more
than offset continued pressure in journal advertising and pharma promotion
product lines.
The Financial & Compliance Services division continued to build on its 2010
performance. Progress was underpinned by double-digit growth in the audit, risk,
and compliance segment (ARC Logics). Transactional revenues also improved during
the quarter driven by strong growth in mortgage document services.
2011 Outlook Reiterated
Performance indicators 2011 Guidance
Ordinary EBITA margin 20.5%-21%
Free cash flow[1] >= ?425 million
Return on invested capital >= 8%
Diluted ordinary EPS [1],[2] ?1.50 to ?1.55
[1] In 2011 constant currencies (EUR/USD = 1.33)
[2] Assumptions: financing costs: ?130 million; effective tax rate: 26%; diluted
weighted average number of shares: 307 million excluding impact of share buy-
back.
The company remains on track to achieve its full-year guidance. For 2011,
ordinary EBITA margin is expected to be 20.5-21%. Improving margins will be
underpinned by the shift to more profitable electronic products and the
continuing contribution of the Springboard program. As in prior years, the
company will invest approximately 8-10% of revenues in new products and
platforms to drive future growth.
Free cash flow will continue to be solid, and is expected to be at least ?425
million for the year in constant currencies. Diluted ordinary earnings per share
is expected to be between ?1.50 and ?1.55 in constant currencies.
Key Programs
The Springboard operational excellence program remains on track to deliver
against the guidance given in February 2011. ?170-180 million in run rate
savings is expected to be generated by the end of the year, with one-time
exceptional costs of ?245-260 million over the life of the program.
The company purchased 2.1 million shares over the first quarter for
approximately ?35 million.
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 2010 annual revenues of ?3.6 billion, employs approximately
19,000 people worldwide, and maintains operations across Europe, North America,
Asia Pacific, and Latin America, serving customers globally. 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 our website, YouTube, follow (at)Wolters_Kluwer on Twitter, or look up
Wolters Kluwer on Facebook for more for information about our customers, market
positions, brands, and organization.
Calendar
July 27, 2011 Half-Year 2011 results
November 9, 2011 Trading update
February 22, 2012 Full-Year 2011 results
Full overview available at www.wolterskluwer.com.
Media Investors/Analysts
Caroline Wouters Jon Teppo
+31 (0)172 641 459 +31 (0)172 641 407
press(at)wolterskluwer.com ir(at)wolterskluwer.com
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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
PDF version of Press Release:
http://hugin.info/130682/R/1514331/450342.pdf
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Source: Wolters Kluwer NV via Thomson Reuters ONE
[HUG#1514331]
Unternehmensinformation / Kurzprofil:
Datum: 11.05.2011 - 08:00 Uhr
Sprache: Deutsch
News-ID 54498
Anzahl Zeichen: 10320
contact information:
Town:
Alphen aan den Rijn
Kategorie:
Business News
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