Revenue Growth Accelerates
Organic Revenue Growth of 4%, Ordinary EBITA Up 18%, Ordinary
Earnings Per Share Increased 32%
Full-Year Outlook Reiterated
Amsterdam (November 7, 2007) - Wolters Kluwer, a leading global
information services and publishing company, today announced
third-quarter 2007 results delivering organic revenue growth of 4%
and an increase in ordinary diluted earnings per share of 32% (40% in
constant currencies). Accelerating organic growth performance was
achieved by Legal, Tax & Regulatory Europe, Health, and Tax,
Accounting & Legal. All divisions contributed to double-digit
ordinary EBITA growth. The company reiterates its full-year 2007
guidance for its key performance indicators.
Wolters Kluwer will execute a further share buy-back program to
return approximately ¤175 million to shareholders. This share
buy-back program is in addition to the current program (announced
March 26, 2007) to purchase ¤475 million of Wolters Kluwer shares and
reinforces management's commitment to return further value to
shareholders.
Highlights include[1]:
Third-quarter 2007:
* Organic revenue growth of 4% (2006: 4%)
* Ordinary EBITA of ¤153 million, grew 18% and 24% in constant
currencies (2006: ¤130 million)
* Ordinary EBITA margin improved to 19% (2006: 16%)
* Revenues of ¤799 million, grew 2% and 6% in constant currencies
(2006: ¤786 million)
* Structural cost savings increased to ¤41 million (2006: ¤33
million)
Nine months ending September 30, 2007:
* Organic revenue growth of 3%, on track to meet the full-year
guidance (2006: 2%)
* Ordinary EBITA of ¤457 million, grew 20% and 26% in constant
currencies (2006: ¤381 million)
* Ordinary EBITA margin improved to 18% (2006: 16%)
* Revenues of ¤2,476 million, grew 2% and 6% in constant currencies
(2006: ¤2,431 million)
* Structural cost savings increased to ¤117 million (2006: ¤91
million)
* Free cash flow of ¤194 million (2006: ¤232 million including ¤53
million one-time tax refund)
* Divestment of Education generated a sales price of ¤774 million, a
book profit of ¤595 million and net proceeds of ¤665 million
Nancy McKinstry, CEO and Chairman of the Executive Board, commented
on the company's third-quarter performance:
"Wolters Kluwer continued to successfully execute our strategy of
accelerating profitable growth during the third quarter of 2007. Our
good organic growth was fueled by new products and strong growth in
online and software solutions. Importantly, all divisions contributed
to the significant increase in operating margins realized through
revenue growth, operational improvements, and prior restructuring
programs. We have a strong, balanced portfolio which enables us to
continue our clear growth momentum. Our performance over the first
nine months of 2007 has put us well on track to meet our full-year
guidance."
Key highlights by division:
Health: Good organic growth of 4% for the quarter met expectations of
accelerated performance from flat growth at the half year. Results
were primarily driven by double-digit organic sales growth in
Professional & Education books and Clinical Solutions.
Corporate & Financial Services: Organic revenue growth of 4% was
largely driven by Corporate Legal Services which demonstrated solid
performance in its Compliance & Governance product line and strong
growth at UCC Direct, CT Corsearch, CT TyMetrix, and CT Summation
businesses. Financial Services delivered positive growth driven by
its banking content businesses partially offset by softness in its
mortgage product line.
Tax, Accounting & Legal: Solid organic revenue growth of 4% was
delivered, with good growth from Tax and Accounting, in particular
the core U.S. software and CCH Canadian businesses. Law & Business
U.S. delivered good growth through improved retention rates and new
sales in the U.S. market. Operating margins continued to improve
across all units.
Legal, Tax & Regulatory Europe: Good organic revenue growth of 6% was
achieved with continued double-digit growth of electronic solutions,
software, and services. Strong improvements in growth and operating
margins were delivered across Europe, led by Italy, Spain, and the
Netherlands.
[1] Year-to-date and third-quarter 2007 results reflect the
Education division as discontinued operations following the March 26,
2007, announcement of its sale. 2006 results have been restated
accordingly.
The full press release including tables can be downloaded from the
following link:
