updated 11/7/2007 2:08:00 AM ET 2007-11-07T07:08:00


Revenue Growth Accelerates

Organic Revenue Growth of 4%, Ordinary EBITA Up 18%, Ordinary Earnings Per Share Increased 32% Full-Year Outlook Reiterated

Amsterdam (November 7, 2007) - Wolters Kluwer, a leading global information services and publishing company, today announced third-quarter 2007 results delivering organic revenue growth of 4% and an increase in ordinary diluted earnings per share of 32% (40% in constant currencies). Accelerating organic growth performance was achieved by Legal, Tax & Regulatory Europe, Health, and Tax, Accounting & Legal. All divisions contributed to double-digit ordinary EBITA growth. The company reiterates its full-year 2007 guidance for its key performance indicators.

Wolters Kluwer will execute a further share buy-back program to return approximately EUR 175 million to shareholders. This share buy-back program is in addition to the current program (announced March 26, 2007) to purchase EUR 475 million of Wolters Kluwer shares and reinforces management's commitment to return further value to shareholders.

Highlights include[1]:

Third-quarter 2007:

* Organic revenue growth of 4% (2006: 4%)

* Ordinary EBITA of EUR 153 million, grew 18% and 24% in constant currencies (2006: EUR 130 million)

* Ordinary EBITA margin improved to 19% (2006: 16%)

* Revenues of EUR 799 million, grew 2% and 6% in constant currencies (2006: EUR 786 million)

* Structural cost savings increased to EUR 41 million (2006: EUR 33 million)

Nine months ending September 30, 2007:

* Organic revenue growth of 3%, on track to meet the full-year guidance (2006: 2%)

* Ordinary EBITA of EUR 457 million, grew 20% and 26% in constant currencies (2006: EUR 381 million)

* Ordinary EBITA margin improved to 18% (2006: 16%)

* Revenues of EUR 2,476 million, grew 2% and 6% in constant currencies (2006: EUR 2,431 million)

* Structural cost savings increased to EUR 117 million (2006: EUR 91 million)

* Free cash flow of EUR 194 million (2006: EUR 232 million including EUR 53 million one-time tax refund)

* Divestment of Education generated a sales price of EUR 774 million, a book profit of EUR 595 million and net proceeds of EUR 665 million

Nancy McKinstry, CEO and Chairman of the Executive Board, commented on the company's third-quarter performance:

"Wolters Kluwer continued to successfully execute our strategy of accelerating profitable growth during the third quarter of 2007. Our good organic growth was fueled by new products and strong growth in online and software solutions. Importantly, all divisions contributed to the significant increase in operating margins realized through revenue growth, operational improvements, and prior restructuring programs. We have a strong, balanced portfolio which enables us to continue our clear growth momentum. Our performance over the first nine months of 2007 has put us well on track to meet our full-year guidance."

Key highlights by division:

Health: Good organic growth of 4% for the quarter met expectations of accelerated performance from flat growth at the half year. Results were primarily driven by double-digit organic sales growth in Professional & Education books and Clinical Solutions.

Corporate & Financial Services: Organic revenue growth of 4% was largely driven by Corporate Legal Services which demonstrated solid performance in its Compliance & Governance product line and strong growth at UCC Direct, CT Corsearch, CT TyMetrix, and CT Summation businesses. Financial Services delivered positive growth driven by its banking content businesses partially offset by softness in its mortgage product line.

Tax, Accounting & Legal: Solid organic revenue growth of 4% was delivered, with good growth from Tax and Accounting, in particular the core U.S. software and CCH Canadian businesses. Law & Business U.S. delivered good growth through improved retention rates and new sales in the U.S. market. Operating margins continued to improve across all units.

Legal, Tax & Regulatory Europe: Good organic revenue growth of 6% was achieved with continued double-digit growth of electronic solutions, software, and services. Strong improvements in growth and operating margins were delivered across Europe, led by Italy, Spain, and the Netherlands.

[1] Year-to-date and third-quarter 2007 results reflect the Education division as discontinued operations following the March 26, 2007, announcement of its sale. 2006 results have been restated accordingly.


The full press release including tables can be downloaded from the following link:

PDF version of press release: http://hugin.info/130682/R/1166571/228472.pdf


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