The Bookseller.com

2nd December 2008

« Headlines

Blackwell helps drive Wiley

11.09.07

John Wiley & Sons saw a 48% increase in revenue to $388.6m for the first quarter of fiscal year 2008, ending 31st July-thanks to its acquisition of Blackwell Publishing.

Blackwell Publishing, which was acquired by Wiley in February, contributed $116m to revenue in the first quarter and made a $32m profit for its parent.

Excluding the impact of Blackwell, Wiley's revenue still increased 3% or 2% excluding foreign exchange rates. Wiley reported an operating profit of $46.3m, compared with $34.9m last year, helped by the contribution from Blackwell Publishing.

Gross profit margin for the first quarter fell from 67.7% in 2007 to 63.8% in 2008, "mainly due to a lower gross margin on Blackwell sales and the adverse impact of a $6.2m acquisition accounting adjustment to revenue and gross profit," the company said. Blackwell also impacted the company's operating and administrative expenses, which rose by 37% from the first quarter 2007.

In Wiley's US professional/trade division, revenue was up 7% to $89.7m with profit up to $20.1m. The scientific, technical and medical division saw revenue of $55.7m, which was flat compared to last year's results, with profit down $1m to $25m. US higher education saw a drop in revenue, from $47.7m from $44.1m last year, with profits down almost $3m to $14.4m. Wiley Europe reported $75.8m in revenue, a 5% increase, or 1% excluding foreign exchange rates, with profit down $1m to £23.2m. In Asia, Australia and Canada, the publisher had revenue to $32m, a 14% increase, or 9% excluding foreign exchange rates, but profit was up to $5m.

John Wiley Blackwell Publishing