Wolters Kluwer 2025 Half-Year Report

Core Insights - Wolters Kluwer reported a 5% organic growth in the first half of 2025, driven by a 7% organic growth in recurring revenue streams, while non-recurring revenues declined due to macroeconomic uncertainty [4][6][54] - The company made significant advancements in integrating generative AI capabilities into its platforms, enhancing customer productivity and outcomes [4][18][19] Financial Performance - Total revenues for the first half of 2025 reached €3,052 million, a 6% increase compared to €2,891 million in 2024 [4][35] - Adjusted operating profit rose to €865 million, reflecting a 13% increase, with an adjusted operating profit margin of 28.4%, up from 26.5% in the previous year [4][36] - Adjusted net profit increased by 11% to €631 million, with diluted adjusted EPS rising to €2.70, a 14% increase [4][39] Revenue Breakdown - Recurring revenues accounted for 84% of total revenues, growing 7% organically, while non-recurring revenues declined 4% [6][54] - The Health division reported revenues of €788 million, up 2%, while Tax & Accounting revenues increased by 8% to €837 million [52][62] - Financial & Corporate Compliance revenues grew 6% to €635 million, and Legal & Regulatory revenues increased by 6% to €487 million [70][77] Strategic Initiatives - The company is focused on scaling expert solutions and advancing cloud-based software as a service (SaaS) revenue models [14][20] - Investments in generative and agentic AI are being prioritized to enhance customer workflows and decision-making processes [19][23] - Wolters Kluwer plans to divest its Finance, Risk & Regulatory Reporting unit for approximately €450 million, which is expected to complete in Q4 2025 [76] Shareholder Returns - An interim dividend of €0.93 per share has been declared, representing 40% of the prior year's total dividend [25] - The company is on track to complete a share buyback program of up to €1 billion, having repurchased €637 million worth of shares by July 29, 2025 [27][29] Outlook for 2025 - The company expects full-year 2025 organic growth to be in line with the previous year, with adjusted operating profit margin anticipated to be near the top end of the range [7][8] - Guidance for diluted adjusted EPS growth is projected to be in the mid- to high-single digits in constant currencies [7][8]