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John Wiley & Sons CL A (JWA) |
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WIKI ANALYSIS
John Wiley & Sons, Inc. (NYSE: JWA) is a publisher of print and electronic products, providing content and digital solutions to customers worldwide. The company operates through three business segments. The Scientific, Technical, Medical and Scholarly (STMS) segment publishes titles for the scientific, technical, medical and scholarly communities. The Professional/Trade segment publishes books, subscription products and information services in all media. The Higher Education segment publishes educational materials in all media, for two and four-year colleges and universities, for-profit career colleges, advanced placement classes and secondary schools in Australia.
Journal subscription revenue and other related publishing income, such as advertising, backfile sales, the sale of publishing rights, journal reprints and individual article sales accounted for approximately 49% of the company’s consolidated revenue in 2010.[1] Book products and book related publishing revenue, such as advertising revenue and the sale of publishing rights, accounted for approximately 51% of the Company’s consolidated revenue during fiscal 2010.
Business Growth
In fiscal 2010, Wiley's revenue increased 5% to $1.7 billion. Adjusted EPS for the year increased 20%, or 6% on a currency neutral basis and excluding pre-tax asset impairment and restructuring charges of approximately $15 million, or $0.17 per share.[2]
The Scientific, Technical, Medical, and Scholarly (STMS) segment had a strong year and added new journal customers, partly due to growth in emerging markets. In the Professional/Trade (P/T) segment, nearly every publishing category showed solid growth, with particular strength in the Americas and EMEA. In Higher Education, Wiley outperformed the industry in a strong market, reflecting increased penetration in community colleges and for-profit universities, and continued revenue growth from WileyPLUS and other digital content.
In 2010, Wiley acquired Microcirculation, the journal of The Microcirculatory Society, and the Israel Journal of Chemistry from Laser Pages Publishing Ltd.[2] Also during the year, the company sold two journals, Cochlear Implants International and Deafness & Education International, to Maney Publishing.[2] In 2010, Wiley also acquired the publishing rights to Topley & Wilson’s Microbiology and Microbial Infections from Hodder Education.[2]
Trends and Forces
Rising demand for published content in Asia
Asia is growing as a major worldwide research center, and Wiley has actively targeted this growth market. Wiley launched the Chinese-language WileyChina.com, helping to bring scientific and scholarly content to China. With one-third of the papers in top Wiley materials science journals now originating in China, in December 2009 Wiley launched a Chinese-language version of the MaterialsViews.com news service.
Rise of e-readers has created a selling opportunity for Wiley
Digital technologies are allowing Wiley to develop flexible business models and customize content to meet its customers’ specific needs. Wiley has seen its sales of eBooks up 93% to $7 million.[2] Wiley also signed an eBook agreement with Apple (AAPL). CliffsNotes.com, owned by Wiley, reported advertising revenue grew by 28% over the prior year, and Dummies.com, also owned by Wiley, recorded its highest-ever monthly traffic count: 4 million users during the month of March.[2]
Wiley is continuing to forge important new partnerships to drive growth. In March 2010, Wiley was selected as the exclusive global publisher of Bloomberg and Bloomberg Business Week. Wiley was named an official licensee by the London Organising Committee of the Olympic and Paralympic Games to publish London 2012 books through a partnership that builds on their agreements related to the Vancouver Winter Olympics and Beijing Summer Olympics.[2]
With 650 titles now available as eBooks through CourseSmart, Higher Education’s eBook program gained ground during the year.[2] In the Australian secondary school market, the number of registered users of the JacarandaPLUS eBook solution grew from 13,000 in April 2009 to 85,000 in April 2010.[2]
Competition
With $1.7 billion in annual revenue, John Wiley & Sons is one of the smaller players in the publishing industry, competing against heavyweights like Reed Elsevier (RUK) ($3.2 billion in revenue) and Pearson (PSO) ($5.7 billion in revenue).
- News Corporation (NWS)
- Reed Elsevier (RUK)
- New York Times Company (NYT)
- McGraw-Hill Companies (MHP)
- Gannett (GCI)
- Reed Elsevier NV (ENL)
- Scholastic (SCHL)
- Lee Enterprises (LEE)
- Pearson (PSO)
References
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