Wiley Reports Quarterly Earnings (Q1 2016), Author-Funded Access Revenue Up 14%

From Wiley’s Earnings Announcement (September 9, 2015):

• Revenue of $423 million, up 2% over prior year on a constant currency basis
• Journal revenue of $202 million, down 1% over prior year on a constant currency basis
• Adjusted EPS of $0.58, up 11% on a constant currency basis
• Full-year financial outlook reaffirmed

Research (Academic Journals and Books)

• Revenue:  First quarter revenue of $237.4 million was flat on a constant currency basis.  A marginal decline in Journal Subscription revenue (-1%), driven by the trailing effects of the Swets bankruptcy, offset growth in Author-Funded Access (+14%).  Research Books revenue was flat.

• Calendar Year 2015 Journal Subscriptions:  At the end of July, calendar year 2015 Journal Subscriptions were up 0.4% on a constant currency basis, with 98% of targeted business contracted for the 2015 calendar year.

• Adjusted Contribution to Profit:  First quarter adjusted contribution to profit of $65.9 million rose 1% on a constant currency basis mainly due to cost reductions.  Contribution to profit on a US GAAP basis declined 6% primarily due to the unfavorable impact of currency.

• Society Business:  Four new society journals were signed in the quarter with combined annual revenue of $12.0 million; eighteen were renewed with approximately $20.4 million in combined annual revenue; and four were not renewed, worth $1.9 million annually.

• Journal Impact Index:  In July, Wiley announced a strong performance in the number of its journal titles indexed in the Thomson Reuters 2014 Journal Citation Reports (JCR).  A total of 1,200 Wiley titles were indexed, with 24 Wiley journals achieving the top rank in their respective categories and 240 achieving a top 10 ranking.  The Thomson Reuters index is a barometer of journal influence across the research community.

Education

• Revenue:  First quarter revenue declined 1% on a constant currency basis to $86.9 million, with Print Textbooks declining 17% and offsetting a strong quarter for Online Program Management (+26%), Custom Material (+16%), and Digital Books (+6%).  The decline in Print Textbooks reflects the continued shift of student demand toward alternative formats and further declines in student enrollment at for-profit institutions.

• Adjusted Contribution to Profit:  First quarter adjusted contribution to profit declined 37% on a constant currency basis to $4.7 million, reflecting lower Print Textbook revenue and continued investment in Online Program Management.

• Online Program Management (formerly Deltak):  As of July 31, 2015, Wiley had 38 university partners and 210 programs under contract, compared to 200 programs at the end of last quarter.  New programs were signed with George Washington University, University of Scranton, and St. Mary’s University of Minnesota.

• Alliances:  In July, Wiley announced a partnership with InsideTrack, a leading student success organization, to make career coaching possible at a low fee for all students who use the WileyPLUS platform for Intermediate Accounting by Kieso, Weygandt, Warfield.  Wiley’s partnership with InsideTrack will offer those students enrolled in the Intermediate Accounting WileyPLUS course free introductory career-related videos and, to paid subscribers, access to InsideTrack’s web and mobile-enabled platform.  InsideTrack’s career coaches will work with students to assess their career-readiness, plan their job search, and develop the skills that employers value most.

Read the Complete Earnings Announcement

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