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)

Filed under: Libraries, News, Reports