Wiley posts small revenue rise for 2020

Wiley has reported revenue of $1,831m (£1,449.5m) for the fiscal year to the end of April 2020, up 2% from 2019's $1,800m (£1,425m), up 3% at constant currency.

However, excluding acquisitions and currency impact, revenue was down 1% for the year.

Wiley spent $230m (£182m) on acquisitions during the year, including tech education company mthree, digital courseware company zybooks, Knewton and researcher career centre Madgex.

Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) for 2020 was down 8% to $355.8m (£281.8m).

The best performing divisions were Education Services, up 47% as reported, or up 11% at constant currency and excluding the impact of acquisitions, and Research Publishing & Platforms, up 1% (up 2% at constant currency). This was partially offset by a decline of 7% (9% at constant currency and excluding acquisitions) in the Academic & Professional Learning business.

Meanwhile Wiley's results for the fourth quarter saw revenue down 3% to $474.6m (£375.8m), with adjusted EBITDA down 23% to $92.8m (£73.5m). The company incurred a net loss of $168.2m (£133.2m), compared with a gain of $77.3m (£61.2m) in the final quarter of the previous year.

The quarter's results included an "impairment of goodwill" charge of $110m (£87m) in the Education Services segment due to lower forecast revenue including the impact of Covid-19 on student enrolments and university finances, as well as $89.5m (£70.8) relating to the Blackwell trade name, acquired in 2007 within the Research Publishing & Platforms segment, reflecting "the company’s decision to simplify Wiley’s brand portfolio that will sharply limit the use of the Blackwell trade name".

President and c.e.o. Brian Napack said: “I am proud of our team’s accomplishments during this difficult period, including the steady execution of our strategy to gain scale in research, accelerate digital courseware adoption, and expand our university partner base. With the onset of the pandemic, our colleagues mobilized rapidly to help researchers rush critical peer-reviewed research to market and to enable our university partners to pivot quickly to online education. Their work has been essential to ensure that scientific inquiry and essential education continue unabated through this period of health, economic and social crisis.”

He added: "While the broad shutdown caused by Covid-19 has created near-term headwinds and uncertainty, our financial position is strong and our strategic plans are tightly aligned with important trends in peer-reviewed research and outcome-oriented online education which are continuing to progress through this crisis.”

Napack and his executive Leadership Team are taking six-month pay cuts of 30% and 15% respectively. Napack said: “We have implemented a number of belt-tightening measures in response to the economic slowdown. While not financially necessary, the Executive Leadership Team and Board of Directors are taking temporary pay reductions to share in the burden of cost reduction with our Wiley colleagues. We believe that it’s the right thing to do given the significant impact of the Covid-19 crisis on our colleagues, customers and partners.”

The company said it could not provide an outlook for fiscal year 2021 because of uncertainty about the length of lockdown and the impact on student enrolments, university budgets and corporate spending. “We will restore annual guidance when visibility returns,” Napack said.