First quarter results in line with expectations; Growth of online/software products, positive performance in subscription revenues supports transformation of portfolio.
Wolters Kluwer, a market-leading global information services company focused on professionals, today released its scheduled 2011 first-quarter trading update, highlighting improved underlying trends and reiterating full-year guidance.
- Full-year 2011 guidance reiterated.
- Subscription revenue growth supported by stable retention rates; cyclical revenue growth turned-positive in Q1 driven by strong performance from corporate and lending transactions.
- Online, software, and service revenues continued to grow organically and as expected; the rate of print decline improved from year-end and Q1 2010.
- Cost savings from the Springboard operational excellence program on track to deliver run-rate savings of €170-180 million.
- 2.1 million shares purchased in the first quarter for approximately €35 million.
- Market conditions remain strong in Asia and continue to improve in the U.S.; trends in Europe are improving, some markets remain challenging.
- Strong financial position reflects a strong balance sheet with solid cash flow in the first quarter.
Nancy McKinstry, CEO and Chairman of the Executive Board, commented on the company’s first-quarter performance: “The company delivered results that were in line with expectations for the first quarter. Growth of higher value online and software products drove positive performance in our subscription revenues and continues to support the transformation of our portfolio. In addition, we continue to enlarge our global footprint by extending products beyond their current markets and aggressively pursuing opportunities in emerging markets. We are confident we will deliver on our expectations for the full year.”