North American Tax & Accounting operations turned in 4-percent organic growth for 2013, In an earnings webcast this week, chief executive Nancy McKinstry said the company is starting to see its investment in cloud products have an impact on financial results. She pointed to CCH Axcess, the tax and accounting cloud suite, and noted "while it's the early days, we are pleased with the progress."
Wolters Kluwer's tax and accounting revenue hit about $1.33 billion for 2013, down 2 percent from 2012, but up 1 percent both in constant currencies and organically. EBITDA was about $356 million, unchanged on an IFRS basis, but up 3 percent in constant currencies and 4 percent organically. The growth came from a 6-percent increase in software revenue which was partly offset by declines in bank product and print revenue.
Operating profit of roughly $245 million was down by 2 percent. North America represents about 54 percent of the revenues of the Tax & Accounting division.
However, the European economy continued to hurt overall performance. For example, the Legal & Regulatory operations had a one-percent decline in organic revenue as the drop in sales in Europe lessened. The company plans to do some cost cutting in 2014, particularly in Europe.
McKinstry predicted Tax and Accounting will continue to perform well. The trend for growth in software and declines in bank products and print products is also expected to continue this year.
Company revenue for 2013 was about $4.9 billion, down 1 percent on an IFRS basis, but up 1 percent in constant currencies and 2 percent organically. Profit for 2013 of about $476 million was 11-percent higher than in 2012.
