First half underlying growth in all businesses
Underlying revenue growth +1%, or +3% excluding biennial exhibition cycling
Improving performance from large subscription and data businesses
Cyclical businesses recovering
Adjusted operating margin +1.3% pts at 26.6%
Return to growth in adjusted earnings per share: +5%

Commenting on the results, Anthony Habgood, Chairman of Reed Elsevier, said:

“The first half has seen underlying revenue growth in each of our businesses (excluding the net cycling out of biennial exhibitions), good growth in operating margin, and a welcome return to growth in adjusted earnings per share (+5%) and in dividends. Reported earnings per share were strongly ahead (+20%) and no restructuring charges were taken as exceptional during the period. The sharp focus on value creation and operational execution should sustain a continued improvement in performance.”

Reed Elsevier’s Chief Executive Officer, Erik Engstrom, commented:

“The first half has seen the growth trajectory improve with our large subscription and data revenues strengthening and most of our cyclical businesses recovering.

Good growth in global scientific and medical research activity has supported spend on research information and tools. The risk business with its pipeline of new product innovation is expanding its data and analytics across insurance carriers’ workflow. In our legal businesses new sales continue to grow and our product and content enhancements are resonating well with customers. Our exhibitions are demonstrating the value of their offering with strong growth in the annual shows and a further acceleration of the new launch programme. Reed Business Information has returned to underlying revenue growth and delivered its highest margin in recent history, as it continued to focus the portfolio on high growth data services and online marketing, and increased the efficiency in its operations.

With positive momentum across our businesses, we continue to expect a gradual improvement in performance.”

Elsevier (44% of adjusted operating profit)

Revenue growth +2% (+2% underlying), adjusted operating profit +5% (+4% underlying), at constant currency
Growing research activity supporting science and medical research related spend
Health Sciences: good growth in electronic solutions offset by continuing weakness in European pharma promotion, print books and US career school enrolments
Budget environment mixed; varies considerably by geography and customer
LexisNexis Risk Solutions (23% of adjusted operating profit)

Revenue growth +3% (+4% underlying), adjusted operating profit +5% (+6% underlying), at constant currency
Strong growth in insurance data and analytics (+7%) supported by new product pipeline
Growth across all of business services, government and screening solutions; varies by market
Insurance software licence business -25% (£7m/€8m); carriers postponing enterprise systems purchases
LexisNexis Legal & Professional (12% of adjusted operating profit)

Revenue growth -1% (+1% underlying), adjusted operating profit -4% (-2% underlying), at constant currency
Return to underlying revenue growth; adjusted operating margin flat
Legal markets stabilised but recovery in activity levels muted; new sales growing, content and product enhancements resonating
Strong growth outside US in online services largely offset by print declines
Reed Exhibitions (15% of adjusted operating profit)

Revenue growth -3% (-4% underlying), adjusted operating profit -7% (-8% underlying), at constant currency
Underlying revenues +10% excluding impact of biennial show cycling
Strong growth in annual events across all geographies
Expanded launch programme with over 40 new launches expected for the full year
Reed Business Information (7% of adjusted operating profit)

Revenue -8% (+2% underlying), adjusted operating profit +32% (+12% underlying), at constant currency
Return to underlying revenue growth; adjusted operating margin up 4.7% pts to 15.4%
Strong growth in data services and online marketing solutions
Leading brands returned to growth in the first half; continuing difficult print advertising markets in other business magazines
Strong financial position with good cash generation

Conversion of adjusted operating profit into cash at 89%
Free cash flow of £440m (after restructuring spend) before dividends
Net debt at 30 June 2011 £3.4bn ($5.5bn; €3.8bn)
Net debt/LTM ebitda: 1.9x (2.4x pensions and lease adjusted)
Parent company earnings per share and dividends

Adjusted earnings per share +5% to 22.3p for Reed Elsevier PLC and +5% to €0.40 for Reed Elsevier NV; +5% at constant currencies.

Reported earnings per share +20% to 15.8p for Reed Elsevier PLC and +20% to €0.30 for Reed Elsevier NV; no exceptional restructuring charges and lower acquisition related integration costs.

Reed Elsevier PLC interim dividend up +5% at 5.65p; equalised Reed Elsevier NV dividend +1% to €0.110. (Difference in growth rates in the equalised dividends reflects changes in the euro:sterling exchange rate since prior year dividend announcement date.)
Outlook

With positive momentum across our businesses and our focus on creating value, we continue to expect a gradual improvement in performance.

Elsevier: Strong demand for research information and electronic tools continues. The budget environment, however, remains mixed. Overall, modest revenue growth is expected for the year.

LexisNexis Risk Solutions: The business is positioned well for the future with good growth in data and analytics and new product initiatives continuing across all the businesses. The software licence business is not expected to improve in the second half.

LexisNexis Legal & Professional: Growth in legal market activity levels remains muted. New sales, however, are growing well. Revenue recovery is expected to continue to be gradual, with adjusted operating margin broadly flat in 2011.

Reed Exhibitions: Continued good growth in annual shows and significant launch activity is expected; however 2011 sees the net cycling out of biennial shows.

Reed Business Information: Data services and online marketing solutions are continuing to grow well. Leading brands are expected to remain stable but many print advertising markets are still weak.
Cijfers op

http://www.reedelsevier.com/mediacentre/pressreleases/2011/Pages/reed-elsevier-interim-results-2011.aspx

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