23rd Apr 2014 08:05
LONDON (Alliance News) - Reed Elsevier PLC Wednesday reiterated its outlook for the full year, as it saw underlying revenue growth rates in its first quarter to end-March in line with the full year 2013.
The information and publishing company said that it had continued to transform its business through organic investment, and had made selective small acquisitions, including Innovata LLC and Tracesmart Ltd. It sold online business to business marketplace Buyerzone LLC during the quarter.
Reed Elsevier noted that it had completed GBP250 million of its planned GBP600 million of share buybacks in 2014. The remaining GBP350 million will be deployed by the end of the year, Reed Elsevier said.
In its Scientific, Technical and Medical business, the company said it continues to expect strong demand for its electronic products offset by declines in its print book and pharmaceutical promotion revenues.
Print book sales and pharmaceutical promotion continued to decline during the quarter, hit by Reed Elsevier migrating its products to a new electronic format and structural changes in the pharmaceutical industry, it said.
However, it said its primary research, scientific databases and tools and electronic clinical solutions saw good growth.
In its Risk Solutions business, the company maintained expectations for good underlying revenue growth, although it cautioned that the outlook for the federal government segment and mortgage refinancing market remained uncertain.
During the quarter, revenue grew in the insurance segment, driven by good take-up of new products and services, Reed Elsevier said. Business services saw revenue grow, driven by strong demand for identity authentication and fraud detection products.
Reed Elsevier said it continues to expect good underlying growth in its Business Information segment, driven by growth in its major data services, stable leading brands and other business magazines and services.
It expects its Legal division to continue to see subdued customer markets, which will limit underlying revenue growth, but it will continue to roll out its new technology platforms and products. During the quarter, the division's US and other major European markets remained subdued.
In Exhibitions, the company continues to expect good underlying growth in the US and Japan, although limited growth in Europe. It continues to expect growth to remain strong in other emerging markets, although at a slightly slower rate than in 2013.
Shares in Reed Elsevier were trading up 0.6% at 890.00 pence Wednesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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