|By Marketwired .||
|November 7, 2012 02:11 AM EST||
ALPHEN AAN DEN RIJN, NETHERLANDS -- (Marketwire) -- 11/07/12 -- Wolters Kluwer today released its scheduled third-quarter 2012 trading update.
* Full-year 2012 guidance confirmed.
* Nine-month revenue up +3% in constant currencies, up +1% organically.
- European markets remain challenging; Legal & Regulatory Europe deteriorates in third quarter.
- North America and Asia driving growth; Tax & Accounting improves in third quarter.
- Recurring revenues (75% of total) sustain momentum.
* Nine-month EBITA margin stable year-on-year.
* Nine-month ordinary free cash flow increased in constant currencies.
* Leverage ratio net-debt-to-EBITDA improves to 2.8x (2011 year-end: 3.1x).
- Expect net-debt-to-EBITDA to approach target of 2.5x by year-end.
Nancy McKinstry, CEO and Chairman of the Executive Board, commented: "Our performance in the third quarter was largely as anticipated, with our European operations facing a difficult macro-economic environment and our North American businesses maintaining their recent momentum. Growth in our online, software, and services products globally continues to support overall positive organic growth for the group. We are actively managing the portfolio to drive faster growth, investing in product innovation and geographic expansion, and seeking further operating efficiencies. The quality of the business continues to improve and we remain confident we will deliver on our full-year guidance."
Full-Year 2012 Outlook
We reiterate our full-year 2012 guidance, despite worsened conditions in Europe and growing uncertainty around the US economy as we enter the fourth quarter.
--------------------------------------------------------------------------- Performance indicators 2012 Guidance(3)) --------------------------------------------------------------------------- Ordinary EBITA margin 21.5-22.5% Ordinary free cash flow1) > = EUR425 million Return on invested capital > = 8% Diluted ordinary EPS1) Low single-digit growth2) --------------------------------------------------------------------------- (1)) In constant currencies (EUR/USD 1.39) (2)) Includes effect of 2012 share buy-backs, stock dividend and performance shares. (3)) Guidance is for continuing operations.
Springboard cost savings are on track to reach a run rate of EUR205-EUR210 million in the full year (compared to EUR191 million in 2011).
Guidance is based on constant exchange rates. Wolters Kluwer generates more than half of its ordinary EBITA in North America. As a rule of thumb, based on our 2011 currency profile, a 1 U.S. cent move in the average EUR/USD exchange rate for the year causes an opposite 0.8 euro-cent change in diluted ordinary EPS.
Net financing costs are expected to be approximately EUR125 million in constant currencies. The benchmark effective tax rate on ordinary income before tax is expected to be approximately 27.5% in 2012 due to an increasing proportion of profits in higher tax regions, such as North America. Our divisional outlook for 2012 is as follows:
In Legal & Regulatory, we expect European markets to remain challenging in the near term. Our North American Legal & Regulatory business is positioned for growth, although transactional revenue streams have softened in recent months. The division's results will reflect two disposals of non-core publishing operations in the Netherlands which were completed in the second quarter of 2012.
In Tax & Accounting, we continue to expect positive organic growth in the second half reflecting seasonal patterns. As indicated in July, we expect the second- half margin to be broadly in line with the second half of 2011.
In Health, we expect continued strong demand for Clinical Solutions. Trends in journal advertising markets are likely to remain weak. Margins should benefit from the ongoing shift towards electronic products. The acquisition of Health Language, announced on October 17, is currently expected to close in early 2013.
In Financial & Compliance Services, we expect good growth in Financial Services and Audit, Risk & Compliance, but continued weakness in Transport Services. Margins reflect investment in global expansion and lower Transport Services transactional revenues.
Dividend Policy and Anti-dilution Policy
Wolters Kluwer has a progressive dividend policy under which the company expects to increase the dividend per share each year. Shareholders have the option to elect dividend pay-out in cash or stock. As per our announcement on July 25, Wolters Kluwer intends to offset the dilution of its stock dividend and performance share issuance annually via share repurchases. For the full year 2012, the company expects to repurchase shares for up to EUR135 million. As of November 6, a total of 7.7 million ordinary shares have been repurchased this year for a total consideration of EUR100 million (average purchase price EUR13.07).
Third-quarter organic revenue growth was 1%, overall in line with the first half. Growth in North America and Asia Pacific has been partially offset by declines in Legal & Regulatory Europe. Total recurring revenues (75% of group total) maintained momentum, as growth in electronic and services subscriptions more than offset the ongoing decline in print subscriptions. Trends in books, transactional and other cyclical products weakened modestly in the quarter.
The third quarter EBITA margin improved slightly and the nine-month margin was broadly stable year-on-year, supported by Springboard savings, the ongoing shift in business mix, and the favorable effect of currency. Third-quarter cash flow from operations increased in constant currencies and the cash conversion ratio improved in the quarter compared to the same period a year ago. Ordinary free cash flow also increased in constant currencies in the third quarter and for the first nine months.
Our net-debt-to-EBITDA ratio (12 month rolling basis) was 2.8x as of September 30, 2012, improving from 2.9x as of June 30, 2012 and 3.1x at year-end 2011. We expect to approach our target of 2.5x by the end of this year. This takes into account acquisitions completed in the second half, the largest of which was FinArch.
Legal & Regulatory saw organic revenue trends deteriorate in the third quarter, due mainly to weakening trends in loose leafs, books and cyclical products (training, advertising) across Europe. The North American Legal & Regulatory business saw good organic growth in the third quarter, with Law & Business improving and Corporate Legal Services (CLS) sustaining good momentum despite lower transaction volumes associated with M&A, business formation, and trademark activities.
Tax & Accounting improved to positive organic growth in the third quarter, as anticipated. Growth in North American tax software more than offset continued weakness in tax publishing and bank products. European revenues showed positive growth in the third quarter, despite the worsened economic conditions. Growth in European tax software compensated for declines in loose leaf, book and cyclical revenues in the region. In Asia Pacific, revenues declined organically in the quarter due mainly to timing of publishing releases in Australia. Acclipse, which offers online accounting software, including cloud-based solutions for finance and tax professionals in Australia, New Zealand, and other parts of Asia Pacific, was acquired during the quarter.
Health remains on track to deliver good growth and margin improvement this year. Clinical Solutions achieved double-digit organic revenue growth in the third quarter, with UpToDate, ProVation Medical and Clinical Drug Information all performing well. The acquisition of Health Language, currently expected to close in early 2013, brings medical terminology management databases and software that are highly complimentary to existing Clinical Solutions services. In Medical Research, Ovid's growth was positive in the quarter, while our medical journals faced continued weakness in advertising markets. Professional & Education books achieved growth in the U.S. education segment, but this was offset by weakness in medical practice textbooks and international sales.
Financial & Compliance Services organic growth moderated in the third quarter from the levels seen in the first half. The full year is still expected to see acceleration in growth compared to 2011. Financial Services, which in the first half had benefitted from implementation fees from new banking customers, achieved good organic growth, primarily from products for U.S. mortgage and lending markets. FRSGlobal achieved double-digit organic growth in the third quarter as it continues to roll out globally. The combination with FinArch, acquired in July, strengthens and extends our capabilities and geographic reach. Transport Services, based in Europe, saw continued top line weakness, particularly in transactional revenues. Audit, Risk & Compliance delivered strong organic revenue growth as it invests in expansion in Asia and Central and South America.
About Wolters Kluwer
Wolters Kluwer is a market-leading global information services company. Professionals in the areas of legal, business, tax, accounting, finance, audit, risk, compliance and healthcare rely on Wolters Kluwer's leading information- enabled tools and software solutions to manage their business efficiently, deliver results to their clients, and succeed in an ever more dynamic world.
Wolters Kluwer reported 2011 annual revenues of EUR3.4 billion. The group employs over 18,500 people worldwide and maintains operations in over 40 countries across Europe, North America, Asia Pacific and Latin America. The company is headquartered in Alphen aan den Rijn, the Netherlands. Wolters Kluwer shares are listed on NYSE Euronext Amsterdam (symbol: WKL) and are included in the AEX and Euronext 100 indices.
For more information about our products and organization, visit www.wolterskluwer.com, follow @Wolters_Kluwer on Twitter, or search for Wolters Kluwer videos on YouTube.
Calendar December 7, 2012 Investor Seminar: Financial & Compliance Services February 20, 2013 Full Year 2012 Results
Should you wish to change how you receive information from Wolters Kluwer, please click here.
Forward-looking Statements This press release contains forward-looking statements. These statements may be identified by words such as "expect", "should", "could", "shall" and similar expressions. Wolters Kluwer cautions that such forward-looking statements are qualified by certain risks and uncertainties that could cause actual results and events to differ materially from what is contemplated by the forward- looking statements. Factors which could cause actual results to differ from these forward-looking statements may include, without limitation, general economic conditions; conditions in the markets in which Wolters Kluwer is engaged; behavior of customers, suppliers, and competitors; technological developments; the implementation and execution of new ICT systems or outsourcing; and legal, tax, and regulatory rules affecting Wolters Kluwer's businesses, as well as risks related to mergers, acquisitions, and divestments. In addition, financial risks such as currency movements, interest rate fluctuations, liquidity, and credit risks could influence future results. The foregoing list of factors should not be construed as exhaustive. Wolters Kluwer disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
PDF version of Press Release: http://hugin.info/130682/R/1655648/535047.pdf
This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Wolters Kluwer NV via Thomson Reuters ONE
SYS-CON Events announces a new pavilion on the Cloud Expo floor where WebRTC converges with the Internet of Things. Pavilion will showcase WebRTC and the Internet of Things. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices--computers, smartphones, tablets, and sensors – connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades.
Oct. 30, 2014 02:30 PM EDT Reads: 2,039
The only place to be June 9-11 is Cloud Expo & @ThingsExpo 2015 East at the Javits Center in New York City. Join us there as delegates from all over the world come to listen to and engage with speakers & sponsors from the leading Cloud Computing, IoT & Big Data companies. Cloud Expo & @ThingsExpo are the leading events covering the booming market of Cloud Computing, IoT & Big Data for the enterprise. Speakers from all over the world will be hand-picked for their ability to explore the economic strategies that utility/cloud computing provides. Whether public, private, or in a hybrid form, clo...
Oct. 30, 2014 02:30 PM EDT Reads: 709
SYS-CON Events announced today that Gridstore™, the leader in software-defined storage (SDS) purpose-built for Windows Servers and Hyper-V, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Gridstore™ is the leader in software-defined storage purpose built for virtualization that is designed to accelerate applications in virtualized environments. Using its patented Server-Side Virtual Controller™ Technology (SVCT) to eliminate the I/O blender effect and accelerate applications Gridsto...
Oct. 30, 2014 02:00 PM EDT Reads: 2,431
SYS-CON Events announced today that Red Hat, the world's leading provider of open source solutions, will exhibit at Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Red Hat is the world's leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, a...
Oct. 30, 2014 12:15 PM EDT Reads: 2,011
As the Internet of Things unfolds, mobile and wearable devices are blurring the line between physical and digital, integrating ever more closely with our interests, our routines, our daily lives. Contextual computing and smart, sensor-equipped spaces bring the potential to walk through a world that recognizes us and responds accordingly. We become continuous transmitters and receivers of data. In his session at Internet of @ThingsExpo, Andrew Bolwell, Director of Innovation for HP’s Printing and Personal Systems Group, will discuss how key attributes of mobile technology – touch input, senso...
Oct. 30, 2014 12:00 PM EDT Reads: 1,644
The Internet of Things (IoT) is making everything it touches smarter – smart devices, smart cars and smart cities. And lucky us, we’re just beginning to reap the benefits as we work toward a networked society. However, this technology-driven innovation is impacting more than just individuals. The IoT has an environmental impact as well, which brings us to the theme of this month’s #IoTuesday Twitter chat. The ability to remove inefficiencies through connected objects is driving change throughout every sector, including waste management. BigBelly Solar, located just outside of Boston, is trans...
Oct. 30, 2014 11:00 AM EDT Reads: 2,098
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, will examine three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics...
Oct. 30, 2014 08:00 AM EDT Reads: 1,495
Internet of @ThingsExpo Silicon Valley announced on Thursday its first 12 all-star speakers and sessions for its upcoming event, which will take place November 4-6, 2014, at the Santa Clara Convention Center in California. @ThingsExpo, the first and largest IoT event in the world, debuted at the Javits Center in New York City in June 10-12, 2014 with over 6,000 delegates attending the conference. Among the first 12 announced world class speakers, IBM will present two highly popular IoT sessions, which will take place November 4-6, 2014 at the Santa Clara Convention Center in Santa Clara, Calif...
Oct. 30, 2014 07:30 AM EDT Reads: 2,170
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at Internet of @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., will show what is needed to leverage the IoT to transform your business. He will discuss opportunities and challenges ahead for the IoT from a market and tec...
Oct. 29, 2014 11:00 PM EDT Reads: 1,437
SYS-CON Events announced today that TeleStax, the main sponsor of Mobicents, will exhibit at Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. TeleStax provides Open Source Communications software and services that facilitate the shift from legacy SS7 based IN networks to IP based LTE and IMS networks hosted on private (on-premise), hybrid or public clouds. TeleStax products include Restcomm, JSLEE, SMSC Gateway, USSD Gateway, SS7 Resource Adaptors, SIP Servlets, Rich Multimedia Services, Presence Services/RCS, Diame...
Oct. 29, 2014 05:00 PM EDT Reads: 1,561
From a software development perspective IoT is about programming "things," about connecting them with each other or integrating them with existing applications. In his session at @ThingsExpo, Yakov Fain, co-founder of Farata Systems and SuranceBay, will show you how small IoT-enabled devices from multiple manufacturers can be integrated into the workflow of an enterprise application. This is a practical demo of building a framework and components in HTML/Java/Mobile technologies to serve as a platform that can integrate new devices as they become available on the market.
Oct. 29, 2014 02:15 PM EDT Reads: 2,019
SYS-CON Events announced today that O'Reilly Media has been named “Media Sponsor” of SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. O'Reilly Media spreads the knowledge of innovators through its books, online services, magazines, and conferences. Since 1978, O'Reilly Media has been a chronicler and catalyst of cutting-edge development, homing in on the technology trends that really matter and spurring their adoption by amplifying "faint signals" from the alpha geeks who are creating the future. An...
Oct. 29, 2014 01:00 PM EDT Reads: 1,503
SYS-CON Events announced today that Aria Systems, the recurring revenue expert, has been named "Bronze Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Aria Systems helps leading businesses connect their customers with the products and services they love. Industry leaders like Pitney Bowes, Experian, AAA NCNU, VMware, HootSuite and many others choose Aria to power their recurring revenue business and deliver exceptional experiences to their customers.
Oct. 29, 2014 10:00 AM EDT Reads: 2,075
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
Oct. 29, 2014 10:00 AM EDT Reads: 2,011
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce the value of the network in helping organizations to maximize their company’s cloud experience.
Oct. 29, 2014 09:00 AM EDT Reads: 2,039
As a disruptive technology, Web Real-Time Communication (WebRTC), which is an emerging standard of web communications, is redefining how brands and consumers communicate in real time. The on-going narrative around WebRTC has largely been around incorporating video, audio and chat functions to apps. In his session at Internet of @ThingsExpo, Alex Gouaillard, Founder and CTO of Temasys Communications, will look at a fourth element – data channels – and talk about its potential to move WebRTC beyond browsers and into the Internet of Things.
Oct. 29, 2014 08:00 AM EDT Reads: 1,583
SYS-CON Events announced today that Gigaom Research has been named "Media Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Ashar Baig, Research Director, Cloud, at Gigaom Research, will also lead a Power Panel on the topic "Choosing the Right Cloud Option." Gigaom Research provides timely, in-depth analysis of emerging technologies for individual and corporate subscribers. Gigaom Research's network of 200+ independent analysts provides new content daily that bridges the gap between break...
Oct. 28, 2014 11:45 PM EDT Reads: 1,605
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Oct. 28, 2014 03:00 PM EDT Reads: 1,564
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.
Oct. 28, 2014 12:00 PM EDT Reads: 1,926
Swiss innovators dizmo Inc. launches its ground-breaking software, which turns any digital surface into an immersive platform. The dizmo platform seamlessly connects digital and physical objects in the home and at the workplace. Dizmo breaks down traditional boundaries between device, operating systems, apps and software, transforming the way users work, play and live. It supports orchestration and collaboration in an unparalleled way enabling any data to instantaneously be accessed on any surface, anywhere and made interactive. Dizmo brings fantasies as seen in Sci-fi movies such as Iro...
Oct. 28, 2014 10:00 AM EDT Reads: 2,116