The major factor in Tax & Accounting’s revenue growth was software, which represents 74 percent of the unit’s revenue.
In this week’s earnings webcast, chief executive Nancy McKinstry said, “Our CCH cloud Axcess suite and CCH ProSystem Engagement did particularly well.”
Tax & Accounting’s operating margin was down because of one-time items, reorganization and the impact of investments in CCH Tagetik. Tax & Accounting revenue for last year reached about $1.47 billion, up 5 percent over 2017—9 percent in constant currencies and 7 percent organically.
Company-wide revenue for 2018 was roughly $4.84 billion. That was down 2 percent from the prior year; up 1 percent in constant currencies and 4 percent organically. Net profit of approximately $777 million rose 7 percent over a year earlier, an increase of 12 percent in constant currencies.The company noted that last year, more than 60 percent of its revenues and adjusted operating profit came from North America.
McKinstry noted growth in the CCH Axcess line. "Today nearly 40 percent of our U.S. tax professional base is using one or more of these modules," she said.