Highlights for the first quarter of 2006 include:
- Revenues of €854 million, a 14% increase over first quarter 2005 (€746 million); organic revenues grew 1%; contribution of acquisitions was 8%, and currency effect 5%.
- Organic revenues growth was slightly above guidance given on performance in the first quarter, due to strong performance at Corporate Legal Services and Tax, Accounting & Legal divisions
- Ordinary EBITA of €114 million, an increase of 12% over first quarter 2005 (€102 million); ordinary EBITA margin declined slightly to 13% (2005: 14%) due to increased investments in product development, marketing and sales, and shared services
- Product development spending of €59 million (an increase of 13% over last year)
- Structural cost savings of €28 million (an increase of 27% over last year)
- Strong free cash flow of €43 million (2005: €12 million) due to the increase of EBITA and a lower balance of tax payments.
- Organic revenues growth was slightly above guidance given on performance in the first quarter, due to strong performance at Corporate Legal Services and Tax, Accounting & Legal divisions
- Ordinary EBITA of €114 million, an increase of 12% over first quarter 2005 (€102 million); ordinary EBITA margin declined slightly to 13% (2005: 14%) due to increased investments in product development, marketing and sales, and shared services
- Product development spending of €59 million (an increase of 13% over last year)
- Structural cost savings of €28 million (an increase of 27% over last year)
- Strong free cash flow of €43 million (2005: €12 million) due to the increase of EBITA and a lower balance of tax payments.
Nancy McKinstry, Chairman of the Executive Board, commented on the Company's performance over the first quarter of 2006:
"I am pleased with the solid progress we made during the first quarter of 2006 towards meeting our targets for the year. Our revenue growth momentum continues with strong performance in tax and accounting software, integrated online libraries, and transaction services, and the integration of recent acquisitions is advancing smoothly. We will continue to focus on delivering profitable revenue growth and value for our customers and shareholders. We are confident in achieving the goals of our three-year strategy and we reiterate the outlook for 2006."
"I am pleased with the solid progress we made during the first quarter of 2006 towards meeting our targets for the year. Our revenue growth momentum continues with strong performance in tax and accounting software, integrated online libraries, and transaction services, and the integration of recent acquisitions is advancing smoothly. We will continue to focus on delivering profitable revenue growth and value for our customers and shareholders. We are confident in achieving the goals of our three-year strategy and we reiterate the outlook for 2006."
Key division highlights, reflecting progress made in the first quarter:
Health: Significant growth over prior year due primarily to the acquisitions of Healthcare Analytics (NDC's Information Management business) and ProVation Medical, as well as good performance at Professional & Education and Pharma Solutions. Organic growth largely reflects anticipated phasing differences.
Health: Significant growth over prior year due primarily to the acquisitions of Healthcare Analytics (NDC's Information Management business) and ProVation Medical, as well as good performance at Professional & Education and Pharma Solutions. Organic growth largely reflects anticipated phasing differences.
Corporate & Financial Services: Strong growth in Corporate Legal Services' corporate compliance, UCC, and trademark transactional services, along with solid growth in Financial Services across the forms, software, and professional services products.
Tax, Accounting & Legal: First-quarter results highlighted a solid tax season that included double-digit growth at the tax software unit, continued adoption of integrated libraries in the tax and legal markets, and good performance in the legal education group.
Legal, Tax & Regulatory Europe: Acquisitions, mainly De Agostini Professionale, significantly affected first quarter results compared to 2005. Revenue performance reflects anticipated phasing differences (France and Germany) and good growth in Italy, Central Europe, and Spain; importantly, Belgium and the Netherlands showed modest organic growth; and restructuring continued in the UK.
Education: First-quarter results reflect the normal seasonal patterns for the division and represents approximately 10% of total results.
The full press release including tables can be downloaded from the following link.
