Wolters Kluwer, the Dutch technology company active in a number of financial technology business areas, has released its half-year 2023 financial results. The company’s revenues were €2,725 million for the period, up 6% organically, with recurring revenues (82% of total revenues), up 7% organically.
“We delivered 6% organic growth as continued strong momentum in recurring revenues more than offset the anticipated downturn in non-recurring revenue streams. Operating costs and margins developed as expected and we remain confident of delivering a full-year margin improvement,” noted Nancy McKinstry, CEO and Chair of the Executive Board, Wolters Kluwer.
The company has reiterated its group-level guidance for 2023. “We continue to expect the group-level adjusted operating profit margin to increase in the fourth quarter of 2023 (compared to fourth quarter 2022) leading to a margin improvement for the full year,” the company noted in its official earnings statement.
“We made important progress towards our strategic goals and are excited about pursuing growth opportunities across the business,” McKinstry added. “Around 50% of our digital revenues are from products that leverage AI and we see generative AI as another powerful tool to drive value for our customers.”
As widely reported Wolters Kluwer moved to create a 5th division, Corporate Performance & ESG (CP & ESG), in March this year. CP & ESG was established to meet the growing demand from corporations and banks for integrated financial, operational, and ESG performance management and reporting solutions.
The division brings together Wolters Kluwer’s global software businesses that focus on corporate performance management, environmental health and safety (EHS), and risk: (CCH Tagetik, Enablon, Finance Risk & Regulatory Reporting, and TeamMate). “By leveraging the natural synergy that exists across these businesses, the company will be able to better serve its customers and drive accelerated growth by extending and integrating its current product portfolio,” noted a spokesperson at the time.
Growth is also set to come from Artificial Intelligence across the sectors Wolters Kluwer serves. “We believe these technologies will improve our customers’ decision-making and productivity and help them solve their most urgent and complex problems – delivering more efficient outcomes,” said Paul Lyon, Wolters Kluwer’s Senior Director of External Communications. “We continue to add advanced technologies, following our responsible AI principles, into our products allowing us to supplement and accelerate our deep domain expertise with the latest technology.”