Reed Business Information’s Adjusted Operating Profit Spikes in 2011
Despite slight decrease in revenue, adjusted operating profit is up 23 percent.
Reed Elsevier’s U.S. b-to-b content division Reed Business Information [RBI] had a strong 2011. Revenue was down slightly at $1.08 billion, falling three percent from 2010’s $1.12 billion. However, the sector’s adjusted operating profit spiked 23 percent. In 2010, RBI had an adjusted operating profit of $139.25 million; in 2011, the number shot up to $172.35 million.
According to the company, RBI’s portfolio (which represents 7 percent of Reed Elsevier’s overall adjusted operating profit) was “rebalanced towards data services, driven by organic growth and acquisitions of Accuity, CBI China and Ascend.”
The company has a positive outlook for 2012, predicting “good growth in core data services businesses offset by softness in print advertising.”
Reed Exhibitions: Going Strong
With more than 470 (and growing) events, Reed Exhibitions is reporting steady financial increases for 2011, squashing rumors of separating the business divisions within its parent company, Reed Elsevier.
“We have no plans to divest any of our five major operating business areas. We have no plans to divest our main events business,” Erik Engstrom, Reed Elsevier’s CEO, told the Financial Times Thursday. “We expect to continue to make small disposals within all of our five main operating divisions, just as we have over the past two years. And we expect to dispose of businesses that we don’t think are aligned to the strategic direction that we want to go.”
For the company’s event division, revenues were up to $1.1 billion, an increase of about $21.9 million over 2010 or 2 percent. The company’s adjusted operating for the event division is up by about 6 percent, rising by about $14.1 million to $261.6 million.
“The net cycling out of biennial shows held back growth in 2011,” a news release from the company says. “Excluding biennial cycling, underlying revenue growth was 10 percent, with good growth across all geographies. New launch activity was accelerated, and we have made a number of selective acquisitions which have increased our presence in high growth markets.”