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Bank Product Decline Cuts into CCH Results

Wednesday, Jul 25 2012
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Nancy McKinstry. Wolters KluwerA decline in bank product revenue and in tax publishing countered 4 percent organic growth in tax and accounting software for Wolters Kluwer's Tax & Accounting operations for the first half ended June 30. The result for the parent of CCH was flat organic revenue for the North American operations while a decline in high-margin bank product revenue at the company's Small Firm Services cut into the EBITA margin.

EBITA for the Tax & Accounting division fell to about $148 million, off 5 percent while revenue rose to about $590 million, flat in constant currency and organically. The company said it also increased its investment in back office infrastructure, customer service and sales and marketing pushed EBITA down. Wolter Kluwer's revenue was about $2.1 billion, up 3 percent in constant currencies and 1 percent organically. EBITA was about $419 million, up 1 percent in constant currencies and down 2 percent organically.

Total company operations were hurt by the economic climate in Europe.

Executives continued to be high on the U.S. tax and accounting operations and said that investments in that business were aimed at improving results even more. "We want to see better growth in that division so we are investing to make that happen," said chief executive Nancy McKinstry. She also commented that "the margins in tax and accounting are world class."

Bob Scott
Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
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