Wolters Kluwer Announces Full-Year Revenue Increase of 9% in 2006

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Beleggingsadvies 28/02/2007 08:17
Amsterdam (February 28, 2007) - Wolters Kluwer, a leading global information services company and publisher, today released its full-year and fourth-quarter 2006 results. Full-year revenues grew 9% with organic revenue growth of 3%. In the fourth quarter, revenues grew 8%, with organic growth of 6%. The successful completion of the transformation over the past three years has strengthened the company and established a foundation for accelerating profitable growth in 2007 and beyond.

Highlights include:
Full-Year 2006:
Revenues increased 9% to €3,693 million (2005: €3,374 million)
Organic revenue growth of 3%, in line with full-year outlook
Ordinary EBITA increased 16% to €618 million (2005: €533 million)
Ordinary EBITA margin of 17% (2005: 16%)
Investment in product development reached €272 million (an increase of 9% over 2005)
Structural cost savings of €128 million (an increase of 28% over 2005)
Strong free cash flow of €443 million (2005: €351 million)
Ordinary diluted EPS increased 16% to €1.23 (an increase of 15% at constant currencies)
Selective acquisitions to strengthen leading positions and enter high-growth adjacent markets

Fourth-Quarter 2006:
Revenues increased 8% to €1,003 million (2005: €932 million)
Organic revenue growth of 6% (2005: 3%)
Ordinary EBITA increased 17% to €173 million (2005: €148 million)
Ordinary EBITA margin of 17% (2005: 16%)
Investment in product development reached €74 million (an increase of 7% over same period 2005)
Structural cost savings of €37 million (an increase of 32% over same period 2005)
Strong free cash flow of €204 million (2005: €208 million)
Ordinary diluted EPS increased 9% to €0.34 (an increase of 15% at constant currencies)
Dividend
Proposal to increase dividend by 5% to €0.58 per share; going forward, Wolters Kluwer will maintain a progressive dividend policy.

Nancy McKinstry, CEO and Chairman of the Executive Board, commented on the company's performance over 2006:
"2006 marked the successful completion of Wolters Kluwer's transformation to deliver sustainable growth and long-term shareholder value. In 2006, Wolters Kluwer continued to achieve strong financial results, consistent with the plans and targets we set for the year. Our revenues grew by 9%, including organic growth of 3%, demonstrating clear momentum behind our efforts to invest in expanding our leading market positions. Electronic product revenues increased significantly, to 43% of total revenues. This growth occurred across all divisions, highlighting the importance of integrated content and software solutions to our overall growth program.

"Wolters Kluwer's operating margins also improved as we realized significant savings resulting from operating efficiencies. This focus on efficiencies is continuing as we actively undertake operational excellence initiatives across the organization.

"With increased free cash flow, we have the financial resources to drive growth as well as return value to our shareholders. Reflecting the strength of these financial results, the company has proposed to increase the dividend by 5% for 2006.

"As we focus on 2007, we will accelerate profitable growth through rigorous execution of our strategy, which includes growing our leading positions, capturing key adjacent markets, exploiting global scale and scope, and continuing to institutionalize operational excellence. This strategy leverages our strength in superior content and technology, deep customer relationships, and market-leading brands.

"Looking forward, I have confidence in our ability to accelerate profitable growth, supporting enhanced shareholder value. It is a very exciting time to be at Wolters Kluwer," said McKinstry.




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