Digital growth helps Reed

Reed Elsevier said that the group saw underlying revenue and adjusted operating profit growth, excluding acquisitions and disposals and currency effects, up 6% and 12% respectively. Total digital revenues were 15% higher in the first half than in the prior first half and accounted for 37% of total revenue.
Sir Crispin Davis, chief executive of the group, said: "The first half of 2006 has seen a good financial performance and further encouraging progress in the development of our business in an increasingly digital environment. Trusted information, technology enabled, and increasingly integrated into customer workflows, is making our customers more effective professionally and making Reed Elsevier a more valued partner. The first half financial performance provides a good platform to meet our 2006 financial goals."
Sales in the six-months to 30th June rose from £2.4bn to £2.6bn, with operating profit up from £317m to £353m.
The Elsevier science and medical business had a solid first half, with 5% organic revenue growth, the group said. Revenues and adjusted operating profits were 11% and 9% higher respectively than in the prior first half at constant currencies, or 5% and 6% before acquisitions and disposals. Sales were up from £644m to £721m, with operating profit up to £196m from £189m. The group said that subscription renewals were strong and there was good growth in new online sales and widening distribution.
LexisNexis saw 8% organic revenue growth. Revenues and adjusted operating profits were up 9% and 8% respectively at constant currencies, or 8% and 9% before acquisitions, with strong growth across LexisNexis. Sales grew to £768m from £683m a year earlier. Operating profit rose from £151m to £169m.
At Harcourt Education, revenues were 2% higher than in the prior first half at constant currencies, or 3% underlying, with the business performing strongly in new US state textbook adoptions and showing initial signs of recovery in the supplemental business. Sales were £390m, against £366m; operating profit flle to £10m from £15m. The group said that the Harcourt Education International business saw underlying revenues 3% lower in the first half, blaming it on a generally weak UK market. Stronger performance is expected in the more important second half particularly with new publishing for the fast-growing vocational market.
Philip.Jones@Bookseller.co.uk