Profits Fall 5% At Reed Elsevier

Reed Elsevier, the Anglo-Dutch publishing group, reported pre-tax profits down 5% at £351m in its interim results released this morning. Chief executive Crispin Davis was confident that the group’s performance was in line with targets set earlier this year, however.

“In February, we laid out in some detail our strategic priorities to turn around Reed Elsevier’s performance,” he said. “Execution against those plans is firmly on track and we are increasingly confident that our strategy will deliver the superior growth and shareholder returns that we have targeted.”

The group, which publishes business and science titles including New Scientist and Travel Weekly, cut 1,500 jobs in February as part of a cost-cutting exercise to release money for investment in the internet (see Jobs To Go At Reed Elsevier As Part Of Cost Cutting). Since then a number of net-based services have been launched and its cost savings are expected to be ahead of its £130m target for this year.

Its internet investment ate into profits, as expected, which fell from £371m to £351m in a year on year analysis for the six month period to the end of June. The group is to continue with its plan to drive its revenues online and is anticipating one billion pounds in internet revenues by 2002.

Turnover was up 6% to £1,795m.

Reed Elsevier: 020 7222 8420