Reed Elsevier returns to growth in a sign firms are loosening purse strings
Publishing and events group Reed Elsevier beat first half forecasts as underlying revenues returned to growth after a torrid few years.
The positive results were lifted by a stabilisation in advertising and promotions.
The firm’s exhibitions business – the world’s largest – grew nine per cent after benefitting from a series of biennial shows that took place this year but not last.
Underlying revenue for the six months rose one per cent to £2.99bn. Adjusted operating profit fell three per cent at constant currencies to £758m.
Scientific and academic publishing division Elsevier, which accounted for 42 per cent of the company’s adjusted operating profit, reported two per cent revenue growth and a four per cent increase in profit.
Reed said revenues were flat in its LexisNexis legal publishing business as legal activity slowed and operating profit fell 14 per cent as it continued to invest to regain market share lost to Thomson Reuters’ Westlaw.
The company said science and medical journal subscription renewals were as expected, while the academic budget environment was difficult.
Informa and Euromoney have also reported improving trends for trade fairs in the last week as companies begin to loosen travel and sponsorship budgets.