Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on WOLTERS KLUWER. We currently have 4 research reports from 1 professional analysts.
|01Dec16 09:00||GNW||Wolters Kluwer NV: Share Buyback Transaction Details November 24 - 30, 2016|
|24Nov16 09:00||GNW||Wolters Kluwer NV: Share Buyback Transaction Details November 17 - 23, 2016|
|17Nov16 09:00||GNW||Wolters Kluwer NV: Share Buyback Transaction Details November 10 - 16, 2016|
|15Nov16 04:00||GNW||Wolters Kluwer Completes Acquisition of Emmi|
|10Nov16 12:58||GNW||Wolters Kluwer NV: Share Buyback Transaction Details November 3 - 9, 2016|
|02Nov16 07:05||GNW||Wolters Kluwer Nominates Frans Cremers and Ann Ziegler for Appointment to Supervisory Board|
|02Nov16 07:00||GNW||Wolters Kluwer 2016 Nine-Month Trading Update|
Frequency of research reports
Research reports on
A disappointing Q3 performance
02 Nov 16
Wolters Kluwer reported 9 month 16 revenues up 2% at CER (in line with H1) and +2% organically, implying a slowdown over Q3 as H1 was up +3%. The reported revenues improved by +1%. Top-line growth was again supported by Digital & services (86% total group) which grew by 4% organically (H1 was +5%) while recurring revenues (78% of total) kept the same +4% organic trend as in the first-half. The adjusted operating margin improved by only 20bps as of end-September (was +60bp as of end-June) as the group increased its investments in new products as well as in marketing expenses. The full-year 2016 guidance was reiterated for mid-single digit EPS growth at CER with an adjusted operating margin at 21.5%-22% as restructuring costs are anticipated at more normal levels (€15-25m compared with €46m in FY15).
Satisfactory H1 16 results but still in investment mode
09 Aug 16
Wolters Kluwer reported H1 16 revenues of €2,042m, up 2% at CER and +3% organically, once again supported by digital & services (86% total group) which grew 5% organically as well as by recurring revenues (78% of total) up 4% organically. Lower restructuring expenses (€8m compared with €22m in H1 15) helped the adjusted operating margin to improve to c.20% (+60bps) and diluted adjusted EPS rose by 6% at CER to €0.88. The group is proposing a €0.19 cash interim dividend per share to be paid in September. The FY16e guidance at CER was reiterated for diluted adjusted EPS rising by mid single-digit CER with an operating margin at 21.5-22% as restructuring costs should start returning to more normal levels (€15-25m compared with €46m in FY15). Management once again highlighted that further disposals could be dilutive to margins and earnings in the near term. It nonetheless raised its guidance for adjusted free cash flow from €600-625m to €650-675m, namely reflecting the strong H1 performance (with €20m improvement in working capital requirements and lower cash tax payments).
Accelerating organic growth validating the group’s strategy
05 Nov 15
Reporting its first 9 months trading statement, Wolters Kluwer showed total revenues up 3% at CER and +3% organically (reported: +17%, mainly reflecting forex, i.e. the euro’s depreciation versus the US dollar while the positive perimeter impact was small), a reassuring acceleration after the group resumed organic revenue growth over H1 15 (+2%). As a reminder, the organic growth acceleration is key for the group as a 2% level is required for an operating margin improvement... Reflecting on the Q3 top-line improvement, the 9-month ordinary EBITA margin therefore increased at CER despite continuing investments in new products/services. The full-year outlook was reiterated (i.e. an operating margin between 21% and 21.5%, after €35m of restructuring was confirmed, of which c.70% in the Legal & Regulatory division). But management, which had already highlighted at end-July that H2 was going to face a more difficult basis of comparison (with growth investments being H2-weighted) confirmed a more challenging Q4 ahead with namely tougher comparables for some non-recurring revenues.
Confirmed return to organic growth and rising operating margin
29 Jul 15
Reporting its H1 15, Wolters Kluwer positively confirmed its return to a 2% organic revenue growth (revenue up +3% at CER and +17% on a reported basis reflecting the US$ strength). Adjusted OP reached €391m, reflecting a 120bp improvement in the margin to 19.4% and EPS rose by 5% at CER. The full-year outlook was reiterated (i.e. operating margin between 21% and 21.5%, after €35m of restructuring, mainly in the Legal & Regulatory division), although management highlighted that H2 was going to face a more difficult basis of comparison and growth investments would be H2-weighted. The €140m share buy-back was completed on 1 July and the group announced it is intending to pay interim dividends, starting with €0.18 in October 2015.
N+1 Singer - Morning Song 29-11-2016
29 Nov 16
Vp has reported another impressive set of interims, confirming strong growth in most markets and a positive outlook. Recent acquisitions are bedding in well and the full year outturn is set to exceed previous expectations (5%/6% EPS upgrades in FY17/FY18). The recent Capital Markets Day provided a reminder of Vp’s qualities (specialist focus, high returns, strong cash generation) and its growth potential, which in our view are not reflected in a modest <11x P/E rating. We firmly believe the shares are due a re-rating and see intrinsic value in excess of 800p.
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.
Response to Government consultation
02 Dec 16
In the 2015 Autumn Statement, the Government stated the intention to remove the right to general damages for minor soft tissue injury claims with compensation for injuries such as whiplash now being made in medical care rather than cash. In addition, the Government proposed to raise the small claims limit for personal injury cases from £1,000 to £5,000.
Conviction List Q4 2016
05 Oct 16
Since its inception in 2010, the Conviction List has outperformed the market in 13 of 18 periods and a reinvested Conviction List would have returned 255% against a Small Companies index that would have returned 130%. Our Conviction List returned 3.7% over the last quarter; this was set against the benchmark UK Small Companies index that returned 11.3% over the same period. Our Q4 portfolio reflects our outlook for a temporary sweet spot for UK growth during the second half of 2016. The downside risk from the uncertainty of the EU Referendum result has been countered by stimulus from the Bank of England, signs of a looser fiscal stance and an 18% YoY reduction in the Sterling Exchange Rate. Compressed corporate fixed income spreads continue to provide a valuation underpin for global equities.
Horizon at FY18
28 Nov 16
Euromoney’s (ERM’s) final figures were modestly ahead of expectations, with the boost from favourable currency moves limiting the drag from those parts of the group identified for disinvestment. The year-end net cash position has built to £83.8m, a result of inherently strong cash generation. This has allowed a maintained dividend, with management indicating a good pipeline of acquisition opportunities. The FY16 figures confirm the initial phase of the strategy, with FY17 set to be a year of transition before the benefits kick in more strongly in FY18. The valuation is currently at a discount to other B2B media stocks, financial publishing groups and software companies in the financial vertical, marking time for further newsflow.
Leveraging brands and data
24 Nov 16
Future is building and widening its revenue streams based on strong global brands and on a scalable delivery platform. Growth of revenues in categories such as eCommerce, events and digital advertising resulted in broadly maintained group FY16 revenues, while the margin has started to build, helped by operating leverage. The Imagine purchase, post year-end, brings further scale and efficiency. The lengthening record of delivery against expectations and the premium projected earnings growth are making the multiple increasingly attractive.