SOURCE: Wolters Kluwer NV

February 23, 2011 02:12 ET

Wolters Kluwer 2010 Full-Year Results - Strong Performance; Positive Momentum

ALPHEN AAN DEN RIJN, NETHERLANDS--(Marketwire - February 23, 2011) -



Wolters Kluwer, a market-leading global information services company focused on professionals, released its 2010 full-year results highlighting strong operating performance, growing momentum in electronic revenues, and an improved outlook for 2011. The company also announced its intention to execute a EUR100 million share buy-back plan.

Highlights
  * Revenue growth of 4% to EUR3,556 million reflecting improved organic
    growth trends
  * Electronic revenues up 7%; now represent 54% of total revenues (2009:
    52%)
  * Online, software, and services revenues approaching 70% of total
    revenues
  * Ordinary EBITA growth of 7%; margin improved 50 basis points to 20.4%
  * Incremental Springboard program savings of EUR62 million exceeded
    expectations
  * Diluted ordinary earnings per share increased to EUR1.48 (2009:
    EUR1.45)
  * Free cash flow accelerated to EUR445 million, up 5%
  * Net-debt-to-EBITDA ratio improved to 2.7 (2009: 2.9)

Looking Forward
  * Springboard program savings upgraded to EUR170-180 million in 2011
  * On track to deliver medium-term guidance for improved performance
  * Company announced its intention to execute a EUR100 million share
    buy-back
  * Proposed dividend increase to EUR0.67 per share

 Key Figures
 (All amounts are in millions of euros unless otherwise indicated)
---------------------------------------------------------------------
 Full Year                         2010    2009      D          D CC
---------------------------------------------------------------------
 Revenues                         3,556   3,425     4%            0%

 Organic revenue growth              0%    (3%)

 Electronic revenues % of total     54%     52%

 Ordinary EBITA                     727     682     7%            3%

 Ordinary EBITA margin            20.4%   19.9%

 Ordinary net income                444     427     4%            2%

 Diluted EPS (EUR)                 0.96    0.40   139%          154%

 Diluted ordinary EPS (EUR)        1.48    1.45     2%            0%

 Free cash flow                     445     424     5%            4%
---------------------------------------------------------------------
 D - % Change; D CC - % Change constant currencies (EUR/USD = 1.39)

Nancy McKinstry, CEO and Chairman of the Executive Board, commented on the performance:

"2010 was a year of successes for Wolters Kluwer. We advanced the transformation of our portfolio and broadened our geographic footprint. Today 70% of our revenue comes from online, software, and service offerings. With 7% growth in electronic revenue and healthy retention rates on subscriptions, we are well positioned for long-term growth.

This year's strong cash flow generation allows us to distribute additional returns to shareholders. We intend to execute a EUR100 million share buy- back program over 2011 and have proposed an increase in our dividend to EUR0.67 per share.

We are pleased with our progress and will continue to invest in high growth segments, focus on online and software solutions and accelerate the globalization of our business. We are confident that we can build on the momentum established in 2010 to deliver improved top-line and profitability performance in 2011."

Financial Overview

Revenue growth components

(All amounts are in millions of euros unless otherwise indicated)
---------------------------------------------------------------------------
Full Year                    % of Total  2010  2009    D D CC          D OG
---------------------------------------------------------------------------
Electronic & service subscription    50 1,775 1,660   7%   3%            3%

Print subscription                   13   473   504 (6%) (9%)          (9%)

Other non-cyclical                    8   287   271   6%   2%            3%

Total recurring revenues             71 2,535 2,435   4%   0%            0%

Books                                10   352   336   5%   1%            1%

Cyclical product lines               19   669   654   2% (1%)            0%
---------------------------------------------------------------------------
Total revenues                      100 3,556 3,425   4%   0%            0%
---------------------------------------------------------------------------
D - % Change; D CC - % Change constant currencies (EUR/USD = 1.39); D OG -
% Organic growth

Total revenues grew 4% in 2010 to EUR3,556 million (0.3% organic). Supported by strong product development efforts, electronic and service subscriptions grew 7%, underpinned by 3% organic growth. Print subscriptions declined 9% (organically) as customers continue to migrate to online solutions and as a result of economic conditions. The subscription portfolio was further strengthened as the company successfully delivered improved retention rates. Total recurring revenues, which include subscription and other non-cyclical revenues, now comprise 71% of total revenues.

Revenue from books improved 5%, with organic growth of 1%, driven by strong performance in the Health & Pharma Solutions division. Cyclical revenues, which accounted for 19% of total revenues, showed marked improvement and finished in line with 2009, reversing a negative growth trend (2009: -11%; 2010 HY:- 2%). With a strong finish to the year, transactional revenues from Corporate Legal Services and Financial Services contributed positively by posting organic growth of 12% and 2%, respectively. These trends helped to offset continued pressure in advertising, training, and consulting activities, particularly in Europe.


The full press release on the 2010 Full-Year Results is available here: (PDF version)



Wolters Kluwer 2010 Full-Year Results (PDF): http://hugin.info/130682/R/1491520/427190.pdf




This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Wolters Kluwer NV via Thomson Reuters ONE

[HUG#1491520]

Contact Information