- Strong business momentum and financial performance
- Restructuring programme on track to deliver further margin improvement
- Sale of Harcourt Education fully completed; net proceeds of £2.0bn/€2.7bn returned to shareholders
- Divestment of Reed Business Information in progress
- Agreed £2.1bn/€2.7bn acquisition of ChoicePoint, Inc. expected to close in H2
Reed Elsevier's Chief Executive Officer, Sir Crispin Davis, commented:
"We have seen a strong performance across our businesses in the first half despite a more challenging economic backdrop and we remain on track to deliver on our goals this year of good revenue growth, meaningful margin improvement and accelerated earnings growth. We have made good progress in implementing our plans announced in February to accelerate growth: the planned divestment of Reed Business Information is progressing and we are seeing strong buyer interest in the business; the agreed £2.1bn/€2.7bn acquisition of ChoicePoint, Inc. in the fast growing risk information and analytics markets is moving through US regulatory review and is expected to complete in the second half; our major restructuring programme to deliver £245m/€310m of cost savings over the next four years is on track with the initial targeted £15m/€19m of savings to be delivered this year. Whilst the professional markets we serve are not immune to economic cycle effects, they are more resilient than most. This, together with the changes we are making in the business and the growing demand for our online information and workflow solutions with the customer productivity they provide, gives us confidence in the outlook.”
Further notes from their presentation:
- Online revenues growing at 10+%
- Online revenues exceed 50% of total revenues.
- Aggressive program of infrastructure cost management including outsourcing and real estate
- RBI: staple financing in place, strong interest, divestiture expected in second half, good operating performance despite difficult environment
- Choicepoint integration well advanced. Synergies on track
- Outlook: Strong across the board with Elsevier book program, LN online solutions, Exhibitions cycling all noted as positive drivers for H2
- RBI H1 Revenues up 3% and Op Income up 7%. Online growth up 20% to 34% of total RBI revenues. 4% print decline.