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Reed Elsevier Q1 Underlying Revenue Grows - Update


Publishing and information firm Reed Elsevier (ENL, RUK, REL.L) Tuesday said that most of its businesses recorded underlying revenue growth in the first quarter. The company continues to expect gradual recovery and continued improvement in performance in 2011.

Segment-wise, Elsevier's first-quarter growth rates were similar to that of last year, as good growth in Scopus and other electronic solutions were offset by Health Sciences, which was hurt by weakness in pharma promotion, European markets and cut backs in student enrollment at US career schools.

LexisNexis Risk Solutions' strong growth in the quarter reflected sales of data and analytics in the insurance business, despite a slow start in insurance software licence business. In the division, screening solutions increased, but government solutions struggled due to US federal budget uncertainties.

Underlying revenues at Legal & Professional returned to growth, with strong rise in new sales in the U.S., despite ongoing cautious spending by law firms, corporations and governments. Outside the US, strong growth in online services and solutions was largely offset by continuing format migration and decline of print products.

In Reed Exhibitions, first-quarter's annual shows averaged mid to high single digit revenue growth rates, including strong double digit growth in emerging markets. "We expect continued good growth this year in annual shows and significant launch activity, although 2011 is impacted by the net cycling out of biennial shows, particularly in the first half," the company said.

Quarterly underlying revenues of Reed Business Information recorded an increase on improvement in its markets and the benefit of the portfolio actions taken. Growth in data services and online marketing solutions businesses also helped the results.

Further, the company said it will report LexisNexis Risk Solutions and LexisNexis Legal & Professional, previously combined as one LexisNexis business, as separate operating segments in 2011.

While announcing the 2010 results in February, the company had noted that most of its markets were stable or improving, and that it was building on the actions taken in 2010 to strengthen the business further, with which a gradual recovery and a continued improvement in performance is expected in 2011. The company reiterated this outlook today.

On Monday, ENL closed at $25.90, down $0.27 or 1.04 percent, and RUK settled at $35.06, down $0.08 or 0.23 percent.

REL.L is currently trading at 537.50 pence, up 2 pence or 0.37 percent.

by RTTNews Staff Writer

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