In This Article:
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Revenue: EUR5.96 billion, an increase of 6% in constant currencies.
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Organic Revenue Growth: 6%.
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Adjusted Operating Profit: EUR1.6 billion, an increase of 8% in constant currencies.
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Adjusted Operating Profit Margin: Increased 70 basis points to 27.1%.
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Diluted Adjusted EPS: Increased 11% in constant currencies.
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Adjusted Free Cash Flow: EUR1.276 billion, an increase of 9% in constant currencies.
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Return on Invested Capital: Increased to 18.1%.
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Leverage Ratio: Net debt-to-EBITDA ratio of 1.6 times.
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Expert Solutions Revenue: Grew 7% organically, reaching 59% of group revenues.
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Recurring Cloud Software Revenue: Grew 16% organically, making up 42% of software revenues.
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Dividends and Share Buyback: Increased dividends and EUR1 billion share buyback.
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Health Division Organic Growth: 6%, led by Clinical Solutions.
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Tax and Accounting Organic Growth: 7%, driven by cloud solutions.
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Financial and Corporate Compliance Organic Growth: 5%.
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Legal and Regulatory Organic Growth: 5%, driven by Digital Information Solutions.
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Corporate Performance and ESG Organic Growth: 5%.
Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Wolters Kluwer NV (WOLTF) achieved 6% organic growth and improved its adjusted operating profit margin.
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Diluted adjusted earnings per share increased by 11% in constant currencies, and adjusted free cash flow rose by 9%, exceeding expectations.
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The company made significant progress in its strategic objectives, with Expert Solutions growing 7% organically and recurring cloud software revenues increasing by 16%.
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Return on invested capital increased to 18.1%, and the company maintained a strong balance sheet with a leverage ratio of 1.6 times.
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Wolters Kluwer NV (WOLTF) returned significant value to shareholders through increased dividends and a EUR1 billion share buyback.
Negative Points
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Corporate Performance and ESG division experienced lower-than-expected growth due to a decline in on-premise software licenses.
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The adjusted operating profit margin included a one-time noncash pension amendment gain, which contributed to the margin increase.
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Adjusted net finance costs increased due to lower interest income and higher coupon interest on refinanced debt.
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The benchmark effective tax rate increased to 23.1% due to unfavorable movements in deferred tax positions and other factors.
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The company expects organic growth to be more modest in the first two quarters of 2025 due to challenging comparables in Health and Tax and Accounting divisions.