Amsterdam (November 12, 2003) - Wolters Kluwer (Euronext Amsterdam: WKL), a leading multinational information services company based in the Netherlands, reported today its (un-audited) trading update for the quarter ended September 30, 2003. Results for the third quarter 2003 have stabilized compared to the first half of 2003, with benchmark figures showing improvements compared to the second quarter 2003. The outlook for 2003 is reiterated.
Benchmark ordinary net income YTD of € 203 mln. Adjusted for currency, benchmark declined 18% YTD (compared with 26% decline over HY 2003)
Improvements bolstered by the 2003 cost savings plan of € 70 million
Revenues YTD € 2,431 mln; EBITA before exceptional items € 377 mln
Net debt reduced by 29% from € 3 bln (Q3 '02) to € 2.1 bln (Q3 '03)
Bond buy back program launched
Ordinary free cash flow improved 25% YTD from € 122 mln to € 152 mln
Outlook full year 2003 reiterated
Nancy McKinstry, Chairman of the Executive Board, commented: "The results for the third quarter are in line with our expectations and demonstrate improvements in performance compared with the second quarter. The benefits of our cost savings programs are being realized and revenue performance is improving. Growth in electronic products continued in all of our markets despite the weakness in worldwide economic conditions."
"Our strategy of investing in growth around our leading market positions, restructuring our cost base, and reorganizing our business around key customer segments, is off to a good start. I have confidence that we will deliver sustainable growth and improved value for our customers and shareholders. We are committed to achieving the results outlined on October 30th, revenue growth of 3-4% and operating margins of 19-20% by 2007," McKinstry said.
€ million
YTD 2003
YTD 2002
% Change
% Change Constant Currencies
Total Revenues
2431
2832
-14
-5
EBITA *
377
520
-27
-18
EBITA margin % *
16
18
Benchmark net profit **
203
288
-30
-18
* Before exceptional items (€ 21 mln) ** Benchmark ordinary net income before amortization intangible fixed assets and exceptional items
Variances YTD
Revenues
EBITA *
Benchmark net profit **
€ million
% change
€ million
% change
€ million
% change
Organic
-65
-2
-67
-13
Acquisitions
69
2
7
2
Continuing activities
4
0
-60
-11
Divestments
-149
-5
-36
-7
At constant rates
-145
-5
-96
-18
-53
-18
Currency
-256
-9
-47
-9
-32
-12
Total (€)
-401
-14
-143
-27
-85
-30
€ million
Q1 2003
Q2 2003
Q3 2003
YTD 2003
Total Revenues
779
830
822
2431
EBITA *
87
143
147
377
EBITA margin % *
11
17
18
16
Benchmark net profit **
39
81
83
203
* Before exceptional items (€ 21 mln) ** Benchmark ordinary net income before amortization intangible fixed assets and exceptional items
Organization and management As of January 2004 the operations will be organized into five divisions focused on our key customer segments. The divisions (Health; Corporate & Financial Services; Tax, Accounting & Legal USA/Asia Pacific; Legal, Tax & Regulatory Europe and Education) replace the existing cluster organization.
The management team was further strengthened with the appointment of Rolv Eide to the position of CEO for Legal, Tax & Business Europe, and Kathy Baker to the position of Senior Vice President Corporate Human Resources.