7 December 2022
Wiley today announced results for the second quarter ended October 31, 2022.
- GAAP Results: Revenue of $515 million (-3% vs. prior year), Operating Income of $57 million (-22% vs. prior year), and EPS of $0.68 (-31% vs. prior year)
- Adjusted Results at constant currency: Revenue of $515 million (+1% vs. prior year), Adjusted EBITDA of $124 million (-4% vs. prior year), and Adjusted EPS of $1.20 (-13% vs. prior year)
- Fiscal 2023 Outlook: Wiley is lowering its revenue outlook at constant currency due to consumer spending and enrollment headwinds in Academic & Professional Learning. Reaffirms full year outlook for Adjusted EBITDA and Free Cash Flow; Adjusted EPS trending to lower end of range mainly due to rising interest expense
MANAGEMENT COMMENTARY
“Despite the challenging economic environment, we continue to see good underlying momentum in our core growth areas of Research Publishing, Research Solutions, and Corporate Talent Development,” said Brian Napack, President and CEO. “This quarter’s results were weighed down by difficult market conditions in our publishing lines in Academic & Professional Learning. We are aggressively managing costs to offset these challenges while continuing to scale our growth offerings in line with favorable long-term trends.”
Revenue
- Research was down 1% as reported, or up 3% at constant currency (+2% organic), driven by organic growth in Research Publishing and Research Solutions and contributions from Solutions acquisitions.
- Academic & Professional Learning revenue declined 14% as reported and 10% at constant currency. Education Publishing performance saw a significant decline in print course material offsetting solid growth in digital content and courseware. Professional Learning saw a material decline in professional publishing from a pullback in consumer spending offsetting continued strong growth in corporate leadership training.
- Education Services increased 12% as reported and 17% at constant currency (+13% organic), with strong double-digit growth in Talent Development offsetting a modest decline in University Services primarily from market-related enrollment challenges.
Adjusted EBITDA
- Research was down 4% at constant currency with revenue growth offset by investment to optimize and scale publishing and solutions.
- Academic & Professional Learning declined 12% at constant currency due to the revenue performance.
- Education Services rose 69% at constant currency due to revenue flow-through in Talent Development and the timing of expenses in University Services
- Adjusted Corporate Expenses were flat at constant currency with higher employee costs offset by the timing of certain expenses.
Read the full release here: https://newsroom.wiley.com/press-releases/press-release-details/2022/Wiley-Reports-Second-Quarter-Fiscal-Year-2023-Results/default.aspx