SOURCE: Wolters Kluwer NV

November 08, 2006 02:20 ET

Wolters Kluwer Third-Quarter 2006 Results

AMSTERDAM, NETHERLANDS -- (MARKET WIRE) -- November 8, 2006 --


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 EUR 920 million, a 7% increase over third quarter of 2005 (EUR 862 million)

* Organic revenue growth of 4% (2005: 2%)

* Ordinary EBITA of EUR 183 million, an increase of 27% over third quarter of 2005 (EUR 143 million), ordinary EBITA margin of 20% (2005: 17%)

* Product development spending of EUR 72 million (an increase of 7% over same period 2005)

* Structural cost savings of EUR 33 million (an increase of 32% over same period 2005)

* Strong free cash flow of EUR 160 million (2005: EUR 120 million)

* Ordinary diluted EPS increased 23% to EUR 0.37 (increase of 31% at constant currencies)


Nine months ended September 30, 2006:

* Revenues of EUR 2,690 million, a 10% increase over first nine months of 2005 (EUR 2,442 million)

* Organic revenue growth of 2%, in line with full-year outlook

* Ordinary[1] EBITA of EUR 445 million, an increase of 15% over first nine months of 2005 (EUR 385 million), ordinary EBITA margin of 17% (2005: 16%)

* Product development spending of EUR 198 million (an increase of 11% over same period 2005)

* Structural cost savings of EUR 91 million (an increase of 26% over same period 2005)

* Strong free cash flow of EUR 239 million (2005: EUR 143 million)

* Ordinary diluted EPS increased 19% to EUR 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:

PDF version of press release: http://hugin.info/130682/R/1086877/190167.pdf


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