John Wiley Reports Earnings Increase in Fiscal 2011

June 13, 2011
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June 13 – June 19, 2011 Edition John Wiley Reports Earnings Increase in Fiscal 2011

NEW YORK, NY/AUTHORLINK NEWS/June 16, 2011– John Wiley & Sons reported a 3% increase in revenue, to $1.74 billion for the fiscal year ended April 30. All three major operating groups posted gains, which were slightly curtailed by the impact of foreign exchange rates. The company’s net income rose 20%, to $171.9 million.

Digital sales continued climbing. According to new CEO Stephen Smith, “The shift to digital continues to enhance all of our businesses, resulting in new revenue models, new opportunities in emerging markets, and margin and working capital improvements.”

In the professional/trade group, revenue rose 2% to $437.1 million, despite a 3% decline in fourth quarter sales attributed in part to Borders’s reorganization problems. Wiley wrote off $9 million in bad debt as a result of Borders’s bankruptcy. Total digital revenue, which includes e-book sales, online advertising and content licensing, accounted for 10% of the group’s revenue, roughly $44 million, compared to 7% in fiscal 2010. E-book sales alone increased to $23 million, including a 145% rise in the fourth quarter to $9 million, 8% of group sales.

In the P/T group’s major categories, business grew 6% to $36 million, with “outstanding growth” in digital sales, Wiley said. Sales in the consumer category fell 7%, to $32 million, largely due to Borders problems. Sales in the technology category fell 10% to $22 million against a very strong prior year, while sales in the professional education market increased 3% to $7 million.

The higher education group posted a 9% sales gain, to $306.6 million. The results were driven by increased student enrollment, strong back-list sales driven by 25% revenue growth in non-traditional and digital products and a strong front list in engineering/computer science and science categories. In the digital area, e-book sales rose 122%, to $13 million, while sales from WileyPlus rose 8% to $33 million, with digital-only billings of WileyPlus accounting for 40% of billings or $13 million.

Wiley is projecting mid-single digit revenue growth and EPS of $3.15 to $3.20 for 2012, excluding foreign exchange.

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