Wiley was founded in 1807 and competes in three markets represented by its core divisions of Research, Professional Development, and Education. The Research segment produces scientific, technical, medical and scholarly journals, reference works, books, and database services such as Wiley Online Library, the company’s online publishing platform that delivers access to 7 million articles from approximately 1,700 journals and 19,000 e-books.
The Professional Development segment publishes digital and print books and provides employment talent solutions, online learning, assessment and training services, and test prep and certification. The Education segment provides print and digital content and education solutions including online program management services for higher education institutions and course management tools for instructors and students.
The company is based primarily in the United States, Canada, Europe, Asia, and Australia.
Analysis & Key Developments
In 2016, Wiley’s adjusted revenues decreased 5%, or 2% excluding the unfavourable impact of foreign exchange. Total revenues were 1.7 billion USD, down from 1.8 billion USD in 2015. The decrease was mainly due to a decline in print books, and the transition to time-based digital journal subscription agreements for calendar year 2016, which was made to simplify the contracting and administration of digital journal subscriptions. Furthermore the loss was partially offset by growth in Online Program Management, Corporate Learning, online test preparation and certification and new product formats in the Education segment.
Book products and other book publishing revenue, such as advertising and the sale of publishing rights, accounted for approximately 41% of Wiley’s consolidated fiscal year 2016 revenue.
Research revenue for fiscal year 2016 decreased 7% to 965 million USD or 3% excluding the unfavorable impact of foreign exchange. The decrease was driven by the company’s transition from issue-based to time-based digital journal subscription agreements for calendar year 2016.
The Professional Development segment recorded decreasing revenues by 1% to 404 million USD, or a 2% increase excluding the impact of foreign exchange. The increase was driven by growth in Talent Solutions and Online Test Preparation and Certification, though it was partially offset by a decline in book revenue.
Education revenue decreased 5% to 358 million USD, or 2% excluding the exchange impact. Print textbooks decreased 20% to 108 million USD. Digital books increased 5% to 35 million USD.
In May 2017 Mark Allin, John Wiley & Sons president and CEO, announced his immediate retirement due to family reasons. Matthew Kissner, chairman of the board, was named interim CEO.
In August 2016 John Wiley & Sons acquired Atypon, a Silicon Valley-based publishing software company, in a 120 million USD cash deal. Atypon's Literatum platform hosts nearly 9,000 journals, 13 million journal articles, and more than 1,800 publication web sites for over 1,500 societies and publishers.
In September 2016 the company bought Ranku, an EdTech start-up from Seattle. Ranku licenses recruitment technology and predictive analytics to Universities and State Systems to scale online degree enrollment.
The company’s publications and services are sold throughout most of the world. Wiley’s operations outside the United States are located in Australia, Canada, England, Germany, Singapore, Russia, India and China. The company operates businesses in Brazil, Denmark, Dubai, Indonesia, Japan, Malaysia, the Philippines, South Korea and Taiwan. All operations market their indigenous publications, as well as publications produced by other publishing locations of the company. Approximately 49% of the company’s consolidated fiscal year 2016 revenue came from non-U.S. markets.
During fiscal 2016, Wiley’s percentage of full-year revenue from digital products rose to 63%, 3% more than in 2015, while the print books contribution fell to 23% (25% in 2015). Revenues from digital products in 2016 are accounted for as follows: Research (5%), Professional Development (12%), and Education (10%).Wiley develops content in a digital format that can be used for both digital and print products. The company’s book content is mainly available online through the platforms Wiley Online Library, WileyPLUS, Wiley Custom Select and others. Digital books are delivered to intermediaries including Amazon, Apple and Google, as well as to libraries through aggregators. Wiley serves the academic market with specialized formats for digital textbooks. Digital book collections are sold by subscription through independent third-party aggregators servicing distinct communities.