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John Wiley's full-year sales dropped 3.7% in the year ended 30th April, while its pretax profit rose by 2%. The decline in sales was particularly marked at its Professional and Trade division, though Wiley said sales at its EMEA and Canada operations showed "modest growth".
Across the group revenue was $1.61bn, compared with $1.67bn a year earlier. But stripping out the impact of exchange rates, the company said that full-year sales rose 3.4%. Revenue for the fourth quarter increased 8% to $403m on a currency neutral basis, but declined 6.7% after adjusting for $64m for foreign exchange rates.
The Professional and Trade division saw full-year sales decline 13% to $413m, with profits down 31% at $97m. On a currency neutral basis, sales fell 10%, with profit down 27%. Wiley said: "The decline is attributed to a weak retail environment, particularly in the US. Revenue in EMEA and Canada showed modest growth." The profit decline "reflected the revenue shortfall, additional inventory, and royalty advance provisions," and what it described as a "$2m bad debt recovery in the prior year".
STM saw full-year sales down 1% to $969m, though up 9% at constant currencies, while profits rose 4% (or 14%) to $399m. The company said: "Increased revenue from journal subscription renewals, new business, global rights, and STMS books was partially offset by lower sales of backfiles, reprints, and custom publishing."
Higher Education recorded sales growth of 1%, or 6% without currency troubles, to $230m, with profit down 10% (3% at constant currencies) at $61.7m. The company said: "The decrease reflects prior year contingency planning, which significantly curtailed expenditures in fiscal year 2008; higher accrued performance compensation; incremental costs associated with newly acquired titles; and increased spending to support the large frontlist."
Citing the "difficult economic environment", William J Pesce, president and chief executive, said: "Two of our three global businesses met or exceeded our expectations. All of our businesses gained market share." He added: “While we anticipate revenue growth on a currency neutral basis, top-line results will be highly dependent on economic conditions around the world.”