Wiley's first quarter shows 'transformation in progress'

Wiley's first quarter shows 'transformation in progress'

Wiley president and c.e.o. Steve Smith has said the company's first quarter of the fiscal year 2014 results show its process of "transformation from print publisher to provider of digital knowledge and knowledge-enabled services". The publisher has seen 52% of its revenue coming from digital content and services, up from 45% a year ago, and a restructuring charge for the quarter of $7.8m.

Wiley's revenue rose to $411m in the first quarter of the fiscal year, up 4% on the same quarter last year, with adjusted earnings per share up 2% over the prior year on a constant currency basis ($0.51).

Smith said the 7% rise in contribution to revenue of digital content and services reflected "gains achieved through the disposition of our consumer publishing business and our increased investment in digital research, online assessment, test preparation and educational services, including full-service online degree programmes and advanced course management tools".

Revenue growth in the quarter was said to be "generally in line with our expectations", with journal subscription revenue growing 4% on the prior year on a constant currency basis. 

However Smith said results were "mixed" in professional development and education segments, with print books continuing to decline in both due to university bookshops and other retailers "ordering less and later in response to limited visibility into demand, increased emphasis on inventory management and a later start of the fall semester in the US".

The Wiley c.e.o. said Wiley saw "significant opportunities for growth through investment and acquisition in the professional services area". In education, WileyPLUS subscription billings were up 15% over the prior fiscal year.

The company recorded a restructuring charge of $7.8m this quarter, with a further $8m anticipated for the second quarter. Wiley said that as of July 31st it had "initiated actions to achieve $60m of its $80m savings goal" for the fiscal year 2015.