Staying Strong? Outsell Reports on 'Big Three'; STM Publishers
Andrew Albanese -- Library Journal, 03/09/2009
- Elsevier, Thomson Reuters 2008 revenues up
- Subscriptions remain strong?
- 2009 uncertain
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(This article first appearened in the March 3 issue of the LJ Academic Newswire.)
With the economic crisis now in full force, Outsell, Inc. has examined the health of the Big Three STM (Science, Technical, Medical) publishers. Reed Elsevier, Wolters Kluwer, and Thomson Reuters had strong years in 2008—and are cautiously optimistic about 2009. Examining results from the STM divisions of each: Outsell VP and lead analyst Daniel Pollock observed:
- Elsevier’s Science and Technology (S&T) division saw revenues climb six percent to £848 million (about $1.2 billionwith “strong subscription renewals (98 percent),” and “contributions from electronic book sales.” Elsevier acknowledged 2009 will be a more difficult year, but indicated that its subscription contract renewals are going well, and expects a similar renewal rate to 2008.
- Wolters Kluwer Health saw revenues dip five percent to € 687 million (about $874 million), with falling revenues attributed to “one-time items.” Wolters Kluwer offered no “specific guidance” on revenues in 2009.
- Thomson Reuters Scientific division saw revenues climb eight percent to $604 million, driven by “half organic,” growth and “half from acquisitions.” In 2009, Thomson Reuters said it expected revenues to grow, but again, offered no “specific guidance.”
“In 2007, these three companies accounted for over one third of the traditional STM market, so their results are a useful bellwether in these turbulent times,” noted Pollock, who also observed that Elsevier’s “expectations of strong subscription renewal rates sit in marked contrast to the doom and gloom scenarios suggested by ICOLC and ARL,” suggesting that “for the larger players at least, STM’s heartlands will be protected from the downturn in 2009.”
Meanwhile, with library budget taking big hits in 2009, and likely in 2010, the “cautious optimism” of the major STM players, Pollock suggested, could put the economic squeeze on the industry’s smaller players. “We therefore expect modest sector growth and further market consolidation over 2009.” For the complete report (subscription required) visit Outsell.
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