Wolters Kluwer 2016 Nine-Month Trading Update

ALPHEN AAN DEN RIJN, Netherlands, Nov. 2, 2016 (GLOBE NEWSWIRE) -- Wolters Kluwer, a global leader in professional information services, today released its scheduled 2016 nine-month trading update.

Highlights
  • Full-year 2016 guidance reiterated.
  • Nine-month revenues up 2% in constant currencies and up 2% organically.
    • Digital & services revenues grew 4% organically (86% of total revenues).
    • Digital revenues rose 5% organically (74% of total), in line with first half trend.
    • Recurring revenues sustain 4% organic growth (78% of total).
    • All main geographic regions delivered positive organic growth.
  • Nine-month adjusted operating profit up 3% in constant currencies; adjusted operating profit margin increased by 20 basis points.
  • Nine-month adjusted free cash flow increased overall and in constant currencies.
  • Net-debt-to-EBITDA was 1.8x as of September 30, 2016.

Nancy McKinstry, CEO and Chairman of the Executive Board, commented: "Through the first nine months of 2016, we have continued to see good momentum in our recurring revenues, reflecting robust organic growth from our expert solutions which deliver deep domain knowledge and productivity to customers. Print books, transactional and other non-recurring revenues were, as expected, subdued in the third quarter. Operational excellence programs and lower restructuring costs are resulting in improved margins while allowing increased investment in new product development and in sales and marketing. We reaffirm our outlook for the year."

Nine Months to September 30, 2016

Nine-month revenues increased 1% overall, including the impact of exchange rate movements. In constant currencies, revenues grew 2%, largely reflecting organic growth of 2%. The effect of disposals on nine- month revenues exceeded the revenue contribution from acquisitions. All geographic regions delivered positive organic growth in the nine-month period. North America (61% of total revenues) saw organic growth moderate to 3% (9M 2015: 5%), primarily due to slower growth in Governance, Risk & Compliance. Europe (31% of total revenues) recorded an improvement in organic growth to 1%, compared to a 1% decline in the comparable period, with all divisions seeing improved year-on-year trends in this region. Asia Pacific & Rest of World (8% of total revenues) saw organic growth decelerate to 2% (9M 2015: 6%), mainly due to weakness in Tax & Accounting in Brazil and parts of Asia Pacific. Total recurring revenues, which accounted for 78% of total revenues sustained 4% organic growth, in line with the first half trends. The nine-month adjusted operating profit margin increased by 20 basis points, reflecting lower restructuring costs in Health and Legal & Regulatory as well as increased investment.