Reed Elsevier share price: Nine-month underlying revenue rises

on Oct 23, 2014
Updated: Oct 21, 2019
Listen, Thursday, October 23: Reed Elsevier Plc (LON:REL) has remained positive about delivering its 2014 revenue and profit targets, after seeing solid growth in underlying revenue in the first nine months of the year.

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In an interim management statement released today, the Anglo-Dutch media company revealed that its underlying revenue had increased four percent in the period, with the strongest growth seen in its Risk and Business Information and Exhibitions divisions. The result was in line with analyst expectations.
“We remain on track to deliver another year of underlying revenue, profit and earnings growth,” the company said in the statement.

In today’s trading, Reed Elsevier shares were 1.33 percent lower at 967.00p, as of 08:17 BST. The company’s stock has risen 7.6 percent since the start of the year.
**Nine months**
Reed Elsevier said that it had seen underlying revenue growth across all its major business areas in the first nine months. The star performers were the Risk and Business Information and Exhibitions units, up seven and eight percent, respectively.

The risk and business information unit benefitted from volume growth and new product roll-outs. The business accounted for half of Reed Elsevier’s 25 acquisitions so far this year.
The exhibitions unit enjoyed strong growth in the US and Japan, while in Europe growth was modest. In China the unit saw “strong growth in certain sectors, and more modest growth elsewhere”.

Reed Elsevier’s Scientific, Technical & Medical division and its Legal unit posted underlying revenue growth of two percent and one percent, respectively.
The company revealed that it had divested 11 assets so far this year for a total consideration of £55 million. It completed £525 million of share buybacks in the first nine months and plans to complete the reminder of its previously announced £600-million total by the end of the year.

**Analysts on Reed Elsevier**
According to the Financial Times, the 20 analysts offering 12 month price targets for Reed Elsevier have a median target of 1,025p, with a high estimate of 1,150p and a low estimate of 800.00p. As of 17 October 2014, the consensus forecast amongst 31 polled investment analysts covering Reed Elsevier suggests that investors should their position in the company. The same consensus estimate has been maintained since the sentiment of investment analysts deteriorated on March 17, 2014, the FT notes.
**As of 08:59 BST buy Reed Elsevier shares at 974.00 pence**
**As of 08:59 BST sell Reed Elsevier shares at 973.00 pence**


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