Strong Results Support Foundation for Accelerating Profitable Growth
Amsterdam (November 8, 2006) - Wolters Kluwer, a leading global
information services company and publisher, today released its
third-quarter 2006 results showing ordinary diluted earnings per
share increase of 23%. Revenues grew 7% resulting from increased
organic revenue growth of 4%, with particularly strong performance
from Corporate & Financial Services and Tax, Accounting & Legal. The
transformation and strengthening of the Company over the past three
years has established a foundation for accelerating profitable
growth. The Company reiterates meeting its goals for 2006.
Highlights include:
Third-quarter 2006:
* Revenues of ¤920 million, a 7% increase over third quarter of 2005
(¤862 million)
* Organic revenue growth of 4% (2005: 2%)
* Ordinary EBITA of ¤183 million, an increase of 27% over third
quarter of 2005 (¤143 million), ordinary EBITA margin of 20% (2005:
17%)
* Product development spending of ¤72 million (an increase of 7% over
same period 2005)
* Structural cost savings of ¤33 million (an increase of 32% over
same period 2005)
* Strong free cash flow of ¤160 million (2005: ¤120 million)
* Ordinary diluted EPS increased 23% to ¤0.37 (increase of 31% at
constant currencies)
Nine months ended September 30, 2006:
* Revenues of ¤2,690 million, a 10% increase over first nine months
of 2005 (¤2,442 million)
* Organic revenue growth of 2%, in line with full-year outlook
* Ordinary[1] EBITA of ¤445 million, an increase of 15% over first
nine months of 2005 (¤385 million), ordinary EBITA margin of 17%
(2005: 16%)
* Product development spending of ¤198 million (an increase of 11%
over same period 2005)
* Structural cost savings of ¤91 million (an increase of 26% over
same period 2005)
* Strong free cash flow of ¤239 million (2005: ¤143 million)
* Ordinary diluted EPS increased 19% to ¤0.89 (increase of 15% at
constant currencies)
Nancy McKinstry, CEO and Chairman of the Executive Board, commented
on the Company's performance over the third quarter of 2006:
"Our results for the third quarter were strong, and through the
first nine months, we are well on course to meet our goals for 2006.
We continue strong execution as we near the completion of the
three-year transformation of the Company that has resulted in
restored organic revenue growth, structural cost savings, significant
growth of online and software positions, and a deeper customer
focus."
[1] Wherever used in this report, the term "ordinary" refers to
figures adjusted for exceptional items and, where applicable,
amortization of publishing rights. Exceptional items for 2005 consist
of restructuring expenses relating to initiatives that followed the
strategic update. "Ordinary" figures are non-IFRS compliant financial
figures, but are internally regarded as key performance indicators to
measure the underlying performance of our 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.
The full press release including tables can be downloaded from the
following link:
