January 19, 2022

Wiley Reports Q2 2014 Earnings and Comments on Swets Bankruptcy & Research Business Reorganization

From the Earnings Announcement:

  • Revenue of $477 million, up 6% over prior year on a constant currency basis
  • Journal subscription revenue of $168 million, up 2% on a constant currency basis
  • Adjusted EPS of $0.90, up 8% on a constant currency basis
  • Reorganization:  On November 13, the Company announced plans to reorganize the Research business. The reorganization will provide sharper focus on managing the portfolio of journal-related products and services.  The books-related portion of Research will be managed toward increasing operating synergies with the Professional Development books business.

On Research Portion of Business

  • Revenue:  Second quarter revenue of $264.8 million grew 5% on a constant currency basis.  Steady growth continued in Journal Subscription revenue (+2%) and Funded Access (+30%).  Growth in Other Journal Revenue (+55%) included approximately $10 million for the sale of a backfile license.  Books/References and Other Research revenue fell 9% and 13%, respectively.  For the first six months, Research revenue increased 2% on a constant currency basis, to $519.7 million.
  • Calendar Year 2014 Journal Subscriptions:  Through November 30, calendar year 2014 journal subscriptions increased 1.8% on a constant currency basis with nearly all expected business closed.
  • Adjusted Contribution to Profit:  Second quarter adjusted contribution to profit after allocated shared service and administrative costs of $78.8 million increased 9% on a constant currency basis, the result of revenue growth and cost savings.  For the first six months, adjusted contribution to profit grew 5% to $148.4 million.
  • Society Business:  Three new society journals were signed in the quarter with combined annual revenue of $0.9 million; three were renewed worth $0.8 million annually; and two were not renewed, worth $0.4 million.
  • Swets Bankruptcy:  Swets Information Services, a global library subscription agent based in Amsterdam, declared bankruptcy in late September.  Impact to CY15 journal subscription revenue is expected to be on the order of $5 million.  Wiley continues to investigate the matter and will provide an update when it releases third quarter earnings.

See Also: Full Text of Q2 2014 Wiley Conference Call

See Also: Wiley Quarterly Results Up; Details Book Reorg (via PW)

About Gary Price

Gary Price (gprice@mediasourceinc.com) is a librarian, writer, consultant, and frequent conference speaker based in the Washington D.C. metro area. Before launching INFOdocket, Price and Shirl Kennedy were the founders and senior editors at ResourceShelf and DocuTicker for 10 years. From 2006-2009 he was Director of Online Information Services at Ask.com, and is currently a contributing editor at Search Engine Land.