The Bookseller.com

2nd December 2008

« Headlines

Blackwell drives Wiley

19.06.08 Alison Flood

Wiley's full year sales for the 12 months to end-April 2008 were up 36% to $1.7bn, driven by $485m in revenue from Blackwell Publishing, which it acquired in February 2007. Excluding Blackwell, sales were up 5%.

Wiley president and c.e.o. William Pesce said that Blackwell was the "primary driver" of the strong results. "Blackwell’s performance exceeded our expectations throughout the year," he added. "The acquisition was much more accretive to EPS [earnings per share] than we anticipated, reflecting the combined effect of operating performance, effective tax planning and lower interest expense."

Blackwell's operating income for the year was $63m. Its fourth quarter revenue increased to $138m from $106m in the same period last year, which Wiley put down to increased subscription revenue and higher backfile sales.

Looking at the performances of Wiley's divisions, Pesce said that higher education "gained momentum", ending the year with a strong quarter. US higher education revenues increased 1% over the year to $165m, with revenue for the fourth quarter increasing 15% over prior year to $28 million. Globally, higher education revenue increased 5% for the full year. Direct contribution to profit for the division was up 4% to $44m, with fourth quarter direct contribution $2m compared to a loss of $3m in the same period of last year.

Pesce said that the professional/trade division was "significantly" affected by "sluggish" market conditions and tight inventory management by some key accounts in February and March, but added that sales recovered in April.

Full year results for professional/trade saw sales advance slightly to $395m from $391m the previous year, with fourth quarter revenue declining 10%. Globally, professional and trade revenue increased 3% for the full year. The division's direct contribution to profit for the fourth quarter declined 18%, reflecting the top-line results, but for the full year, direct contribution to profit improved 4%.

US scientific, technical and medical full year sales were up 2% to $235m, with global STM revenue up 6% for the period excluding Blackwell. Direct contribution to profit for the fourth quarter and fiscal year decreased 2% and 1% respectively. Wiley attributed the decline to a reflection of top-line results offset by increased production costs associated with new journal titles and higher marketing costs.

Wiley Europe's sales were up 10% to $348m, driven by STM journal subscriptions and professional/trade and higher education indigenous book programmes. Its direct contribution to profit for the full year increased 11% over the prior year.

Wiley Europe had a "solid year" with For Dummies titles and professional/trade English language products contributing to results, and UK travel guides accelerating the global expansion of the Frommer's brand outside North America.

Pesce concluded: "Based on fiscal year 2008 results, leading indicators and market conditions, we expect fiscal year 2009 revenue growth to be in the mid-single digits and EPS growth of approximately 20%, excluding non-recurring tax benefits."

Financial International blackwell stm John Wiley Home Alison Flood