Wolters Kluwer Nv (WOLTF) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Let's get right to it on slide six. First half revenues were 3 billion and 52 million euros, an increase of 6% in constant currencies. Organic growth was 5%, slightly lower than the prior period, as we had guided. This was largely due to a downturn in our non-recurring revenues, which I'll come back to in a moment. Adjusted operating profit was 865 billion euros, an increase of 14% in constant currencies. As a result, the margin increased by 190 basis points to 28.4%. The increase in adjusted operating profit drove a 14% rise in diluted adjusted earnings per share in constant currencies. Adjusted free cash flow was 505 million euros, up 13% in constant currencies, reflecting the increase in operating profit and higher cash conversion. Net debt to EBITDA increased to 2.1 times following the recent acquisitions. And lastly, return on invested capital increased to 18.5%. Now let's look at revenues by division on the next slide. Health grew 4% organically, slowing from 6% a year ago due to several factors. These include timing of up-to-date renewals, sharper print decline, and a challenging comparable in medical research. Tax and accounting grew 6% organically compared to 7% a year ago, which was largely due to a decline in non-recurring outsourced professional services against a tough comparable a year ago. Financial and corporate compliance delivered 4% organic growth, similar to the prior period. FCC's recurring revenues grew 6% organically, while FCC's transactional revenues slowed to 1% organic growth. Legal and regulatory achieved 6% organic growth compared to 5% growth a year ago. This reflected steady growth in digital information subscriptions and favorable timing of print subscriptions. And lastly, corporate performance in ESG grew 7% organically compared to 9%...