The company's analysis of its results said the composition and timing of bank products had changed, shifting revenue into the second half and that revenue would likely even out for 2011. While the statement didn't mention specific products, this is probably related to the dramatic drop in the availability of refund anticipation loans during the last tax season. CCH Small Firm Services relies heavily on bank products for the sale of its ATX and TaxWise lines. Companies are moving rapidly towards the use of prepaid bank cards.
Bank Product Revs Trim CCH Results
Revenue for the Tax & Accounting operations of Wolters Kluwer, the parent to CCH, fell by 1 percent for the year ended June 31. And while CCH wasn't mentioned by name, its Small Firm Services operation clearly had an impact on the division as Wolters Kluwer said a change in bank products cut overall revenue.
Total tax and accounting revenue grew to about $407 million, up 3 percent over last year's corresponding half when the change is measured in euros. However, the division total dropped to about $673 million. Its EBITA fell to about $185 million, down 6 percent, again largely a result of the bank product restructuring. North American operations contribute 38 percent of the division's income.
