LexisNexis had a good year despite the problems in the legal information sector. The ChoicePoint acquisition moved the company into a leading position in the risk information and analytics business. Including the ChoicePoint business acquired in September 2008 and after other acquisitions and disposals, revenues were EURO 2.328 billion, 13% higher at constant currencies and adjusted operating profits up 18%.The overall adjusted operating margin was up 95 basis points at reported exchange rates to 26.4%. Without the ChoicePoint acquisition revenues were up 5% at constant currencies and adjusted operating profits up 10%. Underlying margin improvement was 130 basis points, driven by the good revenue growth and tight cost management.
The company states: “Looking ahead to 2009, legal and risk markets are more resilient than most but by no means immune from the deterioration in economic conditions. Law firm activity and corporate and government budgets are increasingly under pressure and this will reduce underlying revenue growth.” Source: Reed Elsevier
Press comment: Why do so many information providers fail to make money online?
ANDY PROZES, CEO of LexisNexis comments: “You will make money if you have content that people need, and if you deliver that content using technology that allows people to do their jobs faster. You must have comprehensive content along with easy tools for customization and clean navigation so individuals can get information quickly and in the right context. Any company with that combination is going to make money. Look at Bloomberg, Thomson Reuters, and Reed Elsevier.”