“Organic growth was weak in April, due to lower new sales and software licenses,” WK said regarding its tax and accounting business. Revenue for the segment was up 5 percent in constant currencies and 5 percent organically over last year’s corresponding period. European companies generally do not provide revenue and net income figures in trading updates
Overall; revenue was up 5 percent, but 2 percentage points stemmed from the favorable impact of currency with organic revenue up 4 percent.
The Internal Revenue Service’s extension of the filing season deadline from April 15 to July 15 is also impacting results. The company said its expects efiling revenue will extend into the third quarter.
In general, WK says, “Market conditions for new sales of subscription products and for non-recurring categories such as training, software licenses, and implementation services are proving challenging.”