Reed Elsevier confident of targets as underlying growth continues into Q3

Reed Elsevier had reiterated its full-year outlook after reporting continued underlying revenue growth in the first nine months of the year.

Revenue at the information group climbed 4%, thanks to growth across each of its major business areas and a number of acquisitions of content, data and exhibition assets.

"We remain on track to deliver another year of underlying revenue, profit and earnings growth," it said.

In the scientific, technical & medical sector underlying revenue grew 2%, largely due to an improvement in research subscription revenue growth rates, which are expected to continue for the full year.

"Although print book revenues showed positive year on year growth in the month of September, their sales trajectory in the final quarter remains uncertain," the group cautioned.

In risk and business information, revenue grew 7% on an underlying basis, with strong growth seen across insurance, business services, government and major data services, which was driven by volume growth, new product roll-outs and expansion in adjacent verticals.

Revenue growth in the legal division was just 1% as customer markets in Europe and the US remained subdued.

Reed explained: "Although the scope for underlying revenue growth remains limited in the current customer market environment, we remain focused on process improvement and expect the run rate of profitability gains in the first half to be at least maintained for the full year."

Exhibitions revenue climbed 8% thanks to strong divisional growth in the US and Japan, with the trend expected to continued.

"The positive impact of cycling is expected to contribute around two percentage points of full year underlying revenue growth," it revealed.