Estimated reading time: 1 minute, 57 seconds

Tax preparation customers are renewing their products from Wolters Kluwer. However, many existing customers are not buying new products, the company said during its recent webcast for earnings for the first half ended June 30.

 The company expects revenue for its Tax and Accounting operations will be flat for 2020 as a result of the impact of the COVID-19 virus pandemic.

“Our clients are renewing their products but they are very reluctant into any new spending areas right now,” CFP Kevin Entricken said during the web cast. He also cited good growth in Tagetik and TeamMate software  but said there are delays in software implementations, which is leading to delays in service revenue and fees.

WK expects some return to normal operations in the second half.  “We do expect to open up the hiring as we move forward, particularly in sales and marketing and technology,” Enricken said. The company stopped travel in the first half but plans to get its sales force on the road in the current half. 

For the recently completed half, Tax and Accounting revenue was approximately $823.8  million, a 4-percent increase over a year earlier; 3 percent in both constant currencies and organic growth. The unit’s operating profit was about $252.2 million, rise of 14 percent from a year earlier; 12 percent each in constant currencies and organic growth.

North American revenue was about $1.66 billion, up 6 percent from last year’s corresponding period; 4 percent each in constant currencies and organic. Total revenue was approximately $2.65 billion, which was 4 percent higher than the same period in 2019; up 3 percent each in constant currencies and organic.

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
Last modified on Wednesday, 12 August 2020
Read 669 times
Rate this item
(0 votes)

Visit other PMG Sites:

click me
PMG360 is committed to protecting the privacy of the personal data we collect from our subscribers/agents/customers/exhibitors and sponsors. On May 25th, the European's GDPR policy will be enforced. Nothing is changing about your current settings or how your information is processed, however, we have made a few changes. We have updated our Privacy Policy and Cookie Policy to make it easier for you to understand what information we collect, how and why we collect it.
Ok Decline