Reed Elsevier Reaffirms 2012 Outlook
Interim Management Statement
24 April 2012
Reed Elsevier, the professional information company, has issued a
statement relating to the first quarter trading performance and outlook
for the full year.
Underlying growth rates in Q1 were consistent with the 2011 full year
Portfolio development continued during the period, with acquisitions
of complementary online subscription services and exhibitions in
emerging markets, and divestment of a number of advertising-based
businesses and certain print products.
Full year outlook: 2012 is on track to be another year of
underlying revenue and profit growth as we further strengthen the
business through organic investment and portfolio adjustment.
Trading performance and full year outlook by business area:
By the end of Q1 completion of subscription renewals was well
progressed in both Science & Technology and Health Sciences. The
global customer budgetary environment is broadly similar to last year,
with variations by both geography and customer. Research article
submissions, articles published and usage have continued to show good
growth, and sales of databases and tools are growing well.
In Health Sciences, good growth in global medical research and
clinical decision support was offset by continued weakness in pharma
promotion, and increasing pressure on print book sales to individuals,
driven by format migration and the weak economic environment.
Full year outlook: We expect another year of modest underlying
revenue growth at Elsevier, underpinned by research volume growth and
growing demand for electronic products and tools.
LexisNexis Risk Solutions
The insurance data & analytics business continued to perform strongly
in Q1 reflecting solid demand for core underwriting products and
growth from new solutions. Business services also performed well,
driven by continuing product success in financial services and
Screening solutions saw moderate revenue growth in Q1, reflecting
earlier timing of the spring ramp up in retail-related hiring.
Government revenue declines continued in Q1, with growth at the state
and local government level more than offset by federal budget
constraints and last year’s wind down of certain federal contracts.
Full year outlook: The good underlying growth in insurance and
business services is set to continue, while the market outlook for
screening remains uncertain and the government environment is mixed.
LexisNexis Legal & Professional
Underlying revenue growth remained marginally positive in Q1 in
subdued market conditions.
In the US good growth in usage, new sales of online research and
litigation tools continued, while print products and web based
listings declined. In international markets, the on-going format
migration was reflected by declining print sales and good growth in
Full year outlook: The scope for short term underlying revenue
growth or margin expansion remains limited given the current market
Reed Exhibitions has started the year well, with good Q1 growth in
annual events in North America, Asia and Latin America. European
annual events have seen growth, but at somewhat lower levels than last
year, particularly in southern Europe. Q1 benefited from the net
cycling in of biennial events.
In Q1 we completed the buy-out of our Brazilian joint venture and made
smaller acquisitions in Brazil, China, and in the alternative energy
Full year outlook: The Q1 trends, with good growth in most
annual shows, are expected to continue. The positive impact of
biennial cycling in 2012 will be particularly apparent in the first
Reed Business Information
The major data services businesses continued to perform well in Q1,
although the US construction sector remains weak. The recent
acquisition of Accuity is delivering on expectations. Leading brands
remained stable, while other business magazines and services saw
continued declines reflecting weak print advertising markets in Europe.
Significant progress has been made in increasing the focus of the RBI
portfolio on paid content and subscription based online data services.
In Q1 we announced the intention to divest RBI’s Australian magazine
and marketing services activities, and Variety, the US title
serving the entertainment industry. In early April we announced the
sale of TotalJobs, the UK’s leading online recruitment
Full year outlook: The underlying revenue growth rate will be
marginally diluted by the sale of TotalJobs. Overall, we expect
the good underlying growth in data services to be offset by print
Reed Elsevier’s financial position remains strong with good cash
- ENDS -
Paul Abrahams (Media)
+44 20 7166 5724
+44 20 7166 5751
Notes to Editors
Reed Elsevier Group plc is a world leading provider of professional
information solutions to the science, medical, legal, risk management,
and business to business sectors. The group employs more than 30,000
people, including 16,000 in North America. Reed Elsevier Group plc is
owned equally by two parent companies, Reed Elsevier PLC and Reed
Elsevier NV; the combined market capitalisation of the two parent
companies is approximately £11bn/€14bn. Their shares are traded on the
London, Amsterdam and New York Stock Exchanges using the following
ticker symbols: London: REL; Amsterdam: REN; New York: RUK and ENL.
Forward-looking statements: This Interim Management Statement
contains forward-looking statements within the meaning of Section 27A of
the US Securities Act of 1933, as amended, and Section 21E of the US
Securities Exchange Act of 1934, as amended. These statements are
subject to a number of risks and uncertainties that could cause actual
results or outcomes to differ materially from those currently being
anticipated. The terms “estimate”, “project”, “plan”, “intend”,
“expect”, “should be”, “will be”, “believe” and similar expressions
identify forward-looking statements. Factors which may cause future
outcomes to differ from those foreseen in forward-looking statements
include, but are not limited to: general economic and business
conditions; competitive factors in the industries in which Reed Elsevier
operates; demand for Reed Elsevier's products and services; exchange
rate fluctuations; legislative, fiscal and regulatory developments;
political risks; changes in law and legal interpretations affecting Reed
Elsevier's intellectual property rights and internet communications; the
availability of third party content and data; terrorism, acts of war and
pandemics; the impact of technological change; and other risks
referenced from time to time in the filings of Reed Elsevier PLC and
Reed Elsevier NV with the US Securities and Exchange Commission.
Issued on behalf of Reed Elsevier PLC and Reed Elsevier NV