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Dutch publishing and information services company Wolters Kluwer has announced revenues down 1% to €1,716m for the six months to 30th June 2014 (€1,742m in same period 2013). Excluding the effect of exchange rate alterations, the result represents a rise of 2%, with 1% generated organically and 1% contributed by acquisitions/divestitures.
Adjusted operating profit fell by 6% to €313m (€334m in same period 2013). The company attributed the fall to restructuring costs of €19m in the first half; these are expected to total €25-€30m for the full year.
Digital revenues represented 68% of the total and grew 5% organically, more than offsetting print decline, the company said. Digital and services revenues combined accounted for 81% of total revenues, as against 71% for the first half of 2013.
Revenues were up 2% year-on-year in the US (1% organically), but down 2% (flat organically) in Europe. Revenues from the Asia Pacific and rest of world rose 8% (6% organically) year-on-year.
Nancy McKinstry, c.e.o. and chairman of the Executive Board, said: "In the first half of the year, we continued to build on and invest in our leading, growing positions and digital solutions, and these areas delivered sustained organic growth. Trends in Europe are still quite varied, but we are encouraged by recent performance of digital products in this region." A planned restructuring programme was "well underway" she added.
Wolters Kluwer's strategy is to expand the high growth segments in its portfolio with opportunities for global expansion, including corporate legal services, tax and accounting software, clinical solutions, and finance, risk and compliance audit. It is investing in mobile applications and cloud-based services, with investment expected to remain at approximately 8-10% of revenues in coming years. The company is also looking for efficiencies in sourcing, technology, real estate, organisational processes and distribution channels, it said.
Last week Wolters Kluwer announced it was to buy the LexisNexis legal business in Poland from Reed Elsevier, while simultaneously divesting its Canadian legal publishing activities to Reed Elsevier. The company said its LexisNexis buy "supports the Legal & Regulatory Division's strategy to concentrate investment on our core markets where opportunities for long-term growth are greatest." The LexisNexis legal business in Poland has approximately 120 employees, and the Wolters Kluwer legal business in Canada has approximately 50.