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.
