Revenue at John Wiley rose 3% in the third quarter ended January 31, 2021, over the comparable period in fiscal 2020, but operating income fell 29.2%, to $34.3 million. Revenue was $482.9 million in the quarter. The profit decline was due to restructuring charges of $20.7 million, which Wiley attributed primarily to the reduction of its real estate footprint. Higher foreign exchange losses also cut into earnings.
Results in the quarter—as well as for the first nine months of the fiscal year—were strong enough for Wiley to slightly raise its financial outlook for the fiscal year ending April 30. Revenue growth is expected to finish the year between $1.90 billion to $1.92 billion, up from previous predictions of a high of $1.89 billion. EBITDA (earnings before interest, taxes, depreciation, and amortization) is now estimated to finish between $395 million and $400 million; previous estimates were that earnings would top out at $395 million.
The projections include results from the recent acquisition of Hindawi. The January purchase of the open access publisher helped to offset declines in subscription revenue, leading to a 3% sales increase in Wiley’s research publishing and platforms division in the quarter.
Revenue in Wiley’s academic and professional learning group fell 2%, which Wiley attributed to the negative impact on Covid-19 on its test prep and in-person corporate training businesses, as well as to a decline in print book revenue. Sales of digital content and courseware rose in the period.
Wiley’s education services division had a 25% increase in sales, driven by organic revenue growth of 13% from strong online enrollment, the company reported, along with an $8 million contribution from the educational services provider mthree, which Wiley bought in January 2020.