Alphen aan den Rijn, November 1, 2023 – Wolters Kluwer, a global leader in professional information, software
solutions and services, today releases its scheduled 2023 nine-month trading update.
Highlights
? Guidance for 2023 reiterated.
? Nine-month revenues up 4% in constant currencies and up 5% organically.
- Recurring revenues (82% of total revenues) up 7% organically; non-recurring revenues down 2%.
- Digital & services revenues (94% of total) up 6% organically; print down 7%.
- Expert solutions revenues (58% of total) up 7% organically.
? Nine-month adjusted operating profit down 2% in constant currencies.
- Adjusted operating profit margin 26.1%, down 150 basis points, as expected.
- We continue to expect an increase in the full-year 2023 adjusted operating profit margin.
? Nine-month adjusted free cash flow down 13% in constant currencies.
- Unfavorable timing of working capital movements and higher capital expenditures.
? Net-debt-to-EBITDA ratio 1.6x as of September 30, 2023.
? Share buyback 2023: on track to reach €1 billion by year-end.
? Share buyback 2024: mandate signed to repurchase up to €100 million in January and February 2024.
Nancy McKinstry, CEO and Chair of the Executive Board, commented: “In the first nine months, we have
sustained strong organic growth in our important recurring revenue streams across all five divisions. The
down-cycle in transactional revenues has lasted longer than we expected, but we are nonetheless on track to
deliver good organic growth and margin improvement for the full year. Investments in product development,
including in artificial intelligence, were maintained at high levels as we continue to see exciting opportunities
to grow our business and support our professional customers in the years ahead.”
Nine Months to September 30, 2023
Total revenues were up 2% overall reflecting the impact of the weaker U.S. dollar, particularly in the third
quarter of 2023. Excluding the effect of currency, acquisitions, and divestments, organic revenues were up 5%
in the first nine months (9M 2022: 6%). Recurring revenues (82% of total revenues) sustained strong
momentum, growing 7% organically which was in line with 2022 and in line with the first half of 2023 (9M 2022:
7%; HY 2023: 7%). Within recurring revenues, cloud software subscription revenues grew 15% organically (9M
2022: 18%).
Non-recurring revenues (18% of total revenues) declined 2% organically (9M 2022: growth of 4%). These
revenues include transactional fees in our Financial & Corporate Compliance division, software license and
implementation fees in our software businesses, and other non-subscription products and services.
Viewed by format, digital revenues (85% of total) grew 7% organically (9M 2022: 8% growth). Services revenues
(9% of total) increased 1% organically (9M 2022: 5% growth), deteriorating slightly in the third quarter due to
the transactional trends in Financial & Corporate Compliance. Print revenues (6% of total) declined 7%
organically (9M 2022: 4% decline), as expected.
Revenues from North America (65% of total) grew 4% organically (9M 2022: 6%), with stronger momentum in
Health dampened by slower growth in the other divisions. Revenues from Europe (27% of total) grew 7%
(9M 2022: 5%). Revenues from Asia Pacific & Rest of World (8% of total) grew 8% organically (9M 2022: 15%).
Nine-month adjusted operating profit declined 2% in constant currencies. The nine-month adjusted operating
profit margin was 26.1%, down 150 basis points compared to the same period in 2022, as expected. The margin
primarily reflects a 6% increase in total personnel costs (as we filled open positions) combined with an
increase in personnel-related expenses, such as travel. Product development spend was maintained at 11% of
revenues, an increase from the comparable period (9M 2022: 10% of revenues).

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Wolters-Kluwer EUR 116,20 -4,90 vol. 158.153