Professional information services company Wolters Kluwer released its scheduled 2016 first-quarter trading update. Revenues increased 2% at constant currencies and 3% on an organic basis.
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The effect of divestitures on revenues exceeded the effect of acquisitions in the first quarter.
In reporting currency, revenues rose 3%, reflecting a 1% positive impact on revenues from currency, as the stronger U.S. Dollar (average EUR/USD 1.10 in the quarter) outweighed weakness in other currencies. Organic growth was supported by solid momentum in recurring revenues.
Non-recurring revenues, in aggregate, advanced at a more moderate pace in the first quarter, largely as expected. The quarter saw deceleration in North America and Asia Pacific & ROW offset by improvement in Europe.
The first-quarter adjusted operating profit margin increased compared to a year ago, supported by the ongoing shift in business mix, lower restructuring charges, the results of efficiency programs, and disposals of certain loss-making units.
Cash conversion was broadly stable in the first quarter compared to a year ago. Adjusted free cash flow increased in constant currencies, mainly as a result of higher adjusted operating profit.
First quarter net acquisition spending, net of cash acquired, was €8 million. Twelve-months-rolling net-debt-to-EBITDA was 1.5x at the end of March and remains favorable to target (2.5x).
In February 2016, we announced a share buyback program for up to €600 million over three years (2016-2018). As of May 10, a total of 0.3 million ordinary shares have been repurchased for a total consideration of approximately €10 million.
A final dividend of €0.57 per share was approved at the Annual General Meeting of Shareholders in April and will be paid in the second quarter.
The final dividend brings the total dividend over the 2015 financial year to €0.75 per share, an increase of 6% compared to the 2014 dividend. For 2016, the interim dividend will again be set at 25% of the prior year’s total dividend. ■