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| ==Business Growth== | ==Business Growth== | ||
| + | Increased spend on product development and sales & marketing was largely offset by cost efficiency gains. | ||
| + | Within Reed Business Information, we reshaped the portfolio, significantly reduced costs, and invested behind the successful data services business, including in early January this year the acquisition of a majority share in the leading petrochemical and energy information service CBI China. | ||
| + | |||
| + | Total revenues were flat at £6,055m | ||
| + | |||
| + | Adjusted operating profit was lower by 1% at £1,555m | ||
| + | |||
| + | Adjusted earnings per share were down 5% to 43.4p for Reed Elsevier PLC, 1% lower at €0.78 for Reed Elsevier NV, and 6% lower at constant currencies | ||
| + | |||
| In February 2011, the Company acquired Shanghai Datong Medical Information Technology Co., Ltd.<ref name=reuters/> | In February 2011, the Company acquired Shanghai Datong Medical Information Technology Co., Ltd.<ref name=reuters/> | ||
| + | |||
| + | LexisNexis (38% of adjusted operating profit) returned to overall revenue growth, with strong growth in the risk business. Subscription revenues in the legal business continued to reflect the lower levels of law firm activity and employment. | ||
| + | |||
| + | In the risk solutions business, strong growth in the insurance business is supported by high transactional activity in the US auto and property markets. A continuous pipeline of new data and analytics products also drives growth, ranging from helping insurers better assess underwriting risk to reducing cost and improving the effectiveness of the insurers’ workflow, from initial potential customer contact to policy renewal. | ||
| + | |||
| + | Reed Exhibitions (10% of adjusted operating profit) saw good revenue growth with the net cycling in of biennial exhibitions and a significantly moderated decline in annual show revenues. The 2010 shows have seen overall success, with growing attendances at the majority of annual events and exhibitor numbers up 4% in the top 50 annual shows. While recovery in the larger markets has taken longer to materialise, by contrast, the shows in China, Russia, the Middle East and Brazil grew strongly. | ||
| + | |||
| + | Reed Business Information (6% of adjusted operating profit) saw good growth in data services and online marketing solutions and significantly moderated declines in advertising markets. The portfolio was significantly reshaped and refocused. The sale and closure of the US controlled circulation magazines and certain other titles were completed, together with the sale of clusters of titles in Europe and Asia | ||
| ==Trends and Forces== | ==Trends and Forces== | ||
| + | |||
| + | ===Demise of print publications=== | ||
| + | |||
| + | Reed Elsevier has seen a significant migration from print products to electronic content and tools over the last ten years, so that print revenues now account for only 25% of revenues | ||
| + | |||
| + | [[Image: Elsevier.gif]] | ||
| ==Competition== | ==Competition== | ||
| Line 15: | Line 38: | ||
| *[[Lee Enterprises (LEE)]] | *[[Lee Enterprises (LEE)]] | ||
| *[[Educational Development (EDUC)]] | *[[Educational Development (EDUC)]] | ||
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| + | |||
| ==References== | ==References== | ||
Revision as of 17:36, July 10, 2011
Reed Elsevier PLC (NYSE: RUK) is a publisher and information provider. The company operates in four segments: Elsevier, comprising scientific, technical and medical publishing; LexisNexis, providing legal, tax, regulatory, risk information and analytics, and business information solutions to professional, business and government customers; Reed Exhibitions, organizing trade exhibitions and conferences; and Reed Business Information, providing information and marketing solutions to business professionals.[1]
Contents |
Business Growth
Increased spend on product development and sales & marketing was largely offset by cost efficiency gains. Within Reed Business Information, we reshaped the portfolio, significantly reduced costs, and invested behind the successful data services business, including in early January this year the acquisition of a majority share in the leading petrochemical and energy information service CBI China.
Total revenues were flat at £6,055m
Adjusted operating profit was lower by 1% at £1,555m
Adjusted earnings per share were down 5% to 43.4p for Reed Elsevier PLC, 1% lower at €0.78 for Reed Elsevier NV, and 6% lower at constant currencies
In February 2011, the Company acquired Shanghai Datong Medical Information Technology Co., Ltd.[1]
LexisNexis (38% of adjusted operating profit) returned to overall revenue growth, with strong growth in the risk business. Subscription revenues in the legal business continued to reflect the lower levels of law firm activity and employment.
In the risk solutions business, strong growth in the insurance business is supported by high transactional activity in the US auto and property markets. A continuous pipeline of new data and analytics products also drives growth, ranging from helping insurers better assess underwriting risk to reducing cost and improving the effectiveness of the insurers’ workflow, from initial potential customer contact to policy renewal.
Reed Exhibitions (10% of adjusted operating profit) saw good revenue growth with the net cycling in of biennial exhibitions and a significantly moderated decline in annual show revenues. The 2010 shows have seen overall success, with growing attendances at the majority of annual events and exhibitor numbers up 4% in the top 50 annual shows. While recovery in the larger markets has taken longer to materialise, by contrast, the shows in China, Russia, the Middle East and Brazil grew strongly.
Reed Business Information (6% of adjusted operating profit) saw good growth in data services and online marketing solutions and significantly moderated declines in advertising markets. The portfolio was significantly reshaped and refocused. The sale and closure of the US controlled circulation magazines and certain other titles were completed, together with the sale of clusters of titles in Europe and Asia
Trends and Forces
Demise of print publications
Reed Elsevier has seen a significant migration from print products to electronic content and tools over the last ten years, so that print revenues now account for only 25% of revenues
Competition
- John Wiley & Sons CL A (JWA)
- McGraw-Hill Companies (MHP)
- Pearson (PSO)
- Scholastic (SCHL)
- News Corporation (NWS)
- Thomson Reuters (TRI)
- Lee Enterprises (LEE)
- Educational Development (EDUC)
References
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