SOURCE: Wolters Kluwer NV

May 10, 2006 02:17 ET

Wolters Kluwer First-Quarter 2006 Results

Revenues Increase 14% Over Prior Year

AMSTERDAM, NETHERLANDS -- (MARKET WIRE) -- May 10, 2006 -- Amsterdam (May 10, 2006) - Wolters Kluwer, a leading multinational publisher and information services company, today announced first-quarter 2006 results showing revenue growth of 14% resulting from increased organic growth, contributions from acquisitions and currency effect. In the final year of its three-year plan, the Company continued to successfully execute its strategy and achieved a solid start towards meeting its goals for 2006.

Highlights for the first quarter of 2006 include:

- Revenues of EUR 854 million, a 14% increase over first quarter 2005
(EUR 746 million); organic revenues grew 1%; contribution of
acquisitions was 8%, and currency effect 5%.
- Organic revenues growth was slightly above guidance given on
performance in the first quarter, due to strong performance at
Corporate Legal Services and Tax, Accounting & Legal divisions
- Ordinary EBITA of  EUR 114 million, an increase of 12% over first
quarter 2005 (EUR 102 million); ordinary EBITA margin declined slightly
to 13% (2005: 14%) due to increased investments in product
development, marketing and sales, and shared services
- Product development spending of EUR 59 million (an increase of 13%
over last year)
- Structural cost savings of EUR 28 million (an increase of 27% over
last year)
- Strong free cash flow of EUR 43 million (2005: EUR 12 million) due to the
increase of EBITA and a lower balance of tax payments.
Nancy McKinstry, Chairman of the Executive Board, commented on the Company's performance over the first quarter of 2006:

"I am pleased with the solid progress we made during the first quarter of 2006 towards meeting our targets for the year. Our revenue growth momentum continues with strong performance in tax and accounting software, integrated online libraries, and transaction services, and the integration of recent acquisitions is advancing smoothly. We will continue to focus on delivering profitable revenue growth and value for our customers and shareholders. We are confident in achieving the goals of our three-year strategy and we reiterate the outlook for 2006."

Key division highlights, reflecting progress made in the first quarter:

Health: Significant growth over prior year due primarily to the acquisitions of Healthcare Analytics (NDC's Information Management business) and ProVation Medical, as well as good performance at Professional & Education and Pharma Solutions. Organic growth largely reflects anticipated phasing differences.

Corporate & Financial Services: Strong growth in Corporate Legal Services' corporate compliance, UCC, and trademark transactional services, along with solid growth in Financial Services across the forms, software, and professional services products.

Tax, Accounting & Legal: First-quarter results highlighted a solid tax season that included double-digit growth at the tax software unit, continued adoption of integrated libraries in the tax and legal markets, and good performance in the legal education group.

Legal, Tax & Regulatory Europe: Acquisitions, mainly De Agostini Professionale, significantly affected first quarter results compared to 2005. Revenue performance reflects anticipated phasing differences (France and Germany) and good growth in Italy, Central Europe, and Spain; importantly, Belgium and the Netherlands showed modest organic growth; and restructuring continued in the UK.

Education: First-quarter results reflect the normal seasonal patterns for the division and represents approximately 10% of total results.

The full press release including tables can be downloaded from the following link.

PDF version of Press Release (

Caroline Wouters
Vice President, Corporate Communications
t +31 (0)20 60 70 459

Oya Yavuz
Vice President, Investor Relations
t +31 (0)20 60 70 407

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