AMSTERDAM, Netherlands, May 11, 2005 (PRIMEZONE) -- Wolters Kluwer, a leading multinational publisher and information services company, announced today good results for the first quarter of 2005 as progress continues on its three-year plan to transform the company.
Highlights for the first quarter of 2005 include:
-- Revenue of 746 million showed improved organic growth of 2%
compared with 1% in 2004
-- Stronger growth supported by increased investment in product
development
-- Ordinary EBITA of 102 million and ordinary EBITA margin of
14% are largely in line with prior year results despite
continued investments in new products and restructuring
initiatives
-- Structural cost savings of above 20 million achieved;
non-exceptional restructuring costs of approximately 10
million
-- Free cash flow of 11 million was affected by movements in
working capital and the timing of interest payments on debt
instruments
-- New corporate identity launched emphasizing the Company's
transformation to an operating company and its power brands
-- Full-year 2005 outlook reiterated
Nancy McKinstry, Chairman of the Executive Board, commented on the Company's performance over the first quarter of 2005:
"Our first quarter 2005 achievements show that the progress we made in 2004 in transforming Wolters Kluwer has established the foundation for growth throughout 2005 and beyond. Our focus on customers and growth initiatives is yielding sustainable results. In addition, our restructuring initiatives continue to deliver cost savings and efficiencies across all divisions. We are pleased with our start to 2005."
Key business highlights, reflecting progress made in the first quarter of 2005:
Health: Improved profitability, a continuation of organic growth, and further investment in new product and business development activities marked a good first quarter for the division.
Corporate & Financial Services: Good organic growth due to performance of core software products and services, and double-digit growth from recent strategic acquisitions.
Tax, Accounting & Legal: Growth results were driven by new sales of tax and accounting software, good market acceptance of integrated publishing products in tax and legal, and a solid performance in the 2005 tax season.
Legal, Tax & Regulatory Europe: Online growth and improvements in sales and marketing continued to support satisfactory growth in France, Central Europe, Italy, and Spain; restructuring efforts in the United Kingdom, the Netherlands, and Belgium are progressing on schedule.
Education: First-quarter revenues represent less than 12% of the total year; positive start in Sweden, the United Kingdom, and the Netherlands.
The full press release including tables can be downloaded from the following link: