Revenue for the year ended April 2015 was $1.8224 billion (ie thousand million), up from $1.7426 billion in 2011 (p.14):
“Revenue for fiscal year 2015 increased 3% to $1,822.4 million, or 4% excluding the unfavorable impact of foreign exchange. (p. 26). Acquisitions and sales contributed substantially to this, but there was ‘organic’ growth too largely through increased revenue from journal subscriptions contributed to this rise ($7 million dollars) and fees for open access ($5million) (p. 26).
“Research accounted for approximately 57% of total Company revenue in fiscal year 2015.” 64% of Wiley’s Research revenue came from journal subscriptions (pp. 15 and 16) and those subscriptions contributed 45% of total income across the whole range of its operations (p. 21). The gross profit margin on the Research part of Wiley’s work was 73.5%, up a little from the previous year (p. 29).
“Journal Subscription revenue growth was driven by new subscriptions ($4 million), new titles ($2 million) and publication timing ($1 million).” (p. 29). “Funded Access revenue, which represents article publication fees that provide for free access to author articles grew $4.7 million in fiscal year 2015 due to a higher volume of articles published by the Company.” (p. 29)
Europe in general and the UK in particular are very productive for Wiley…..
“Governments in Europe have been more supportive of the gold [author pays] model, which thus far is generating incremental revenue for publishers with active open access programs.” (Wiley, 2015, p. 7) [Authors or their institutions pay between $2,000 and $5,000 dollars, depending on the journal, to demolish the paywall Wiley erects around their articles].
Regionally, over 55% of Wiley’s income from Research (largely journals) came from Europe, the Middle East and Africa (EMEA countries). This compares to only 14% from its Professional Development work and 5% from its Education activities from the EMEA region. The proportions of income from the Americas, by contrast, were 39% (Research), 78% (Professional Development) and 78% (Education) (pages 44, 46, 48). This suggests that universities in the EMEA countries are contributing far more to Wiley’s lucrative journal subscription income than North American ones, resulting in higher revenues and higher profits for Wiley. The UK is by far the biggest contributor to Wiley’s total income and profits, after the United States (p. 98).
And the British government has been very accommodating:
“the Company recorded non-cash deferred tax benefits of $10.6 million ($0.18 per share), principally associated with new tax legislation enacted in the United Kingdom ("UK") that reduced the U.K. statutory income tax rates by 3%. The benefits reflect the measurement of all applicable U.K. deferred tax balances to the new income tax rates of 21% effective April 1, 2014 and 20% effective April 1, 2015. Excluding the impact of the tax benefits described above, the Company's effective tax rate decreased from 23.3% to 22.9% principally due to higher non-U.S. tax benefits and lower U.K. income tax rates…” (p. 28). “The effective tax rate for fiscal year 2014 was 17.9% compared to 22.8% in the prior year.” (p. 41).
Despite all this profit, Wiley has worsened the pension scheme for its employees, with those in the UK getting hit in April 2015:
“The Company provides defined benefit pension plans for certain employees worldwide. The Company's Board of Directors approved amendments to the U.S., Canada and U.K. defined benefit plans that froze or will freeze the plans effective June 30, 2013, December 31, 2015 and April 30, 2015, respectively.” (p. 10.)
Wiley. J. Inc. (2015) Annual Report Pursuant To Section 13 Or 15(D) Of The Securities Exchange Act Of 1934 For The Fiscal Year Ended: April 30, 2015. http://eu.wiley.com/WileyCDA/Section/id-370237.html