November 3, 2010 / 8:06 AM / in 7 years

UPDATE 1-Wolters Kluwer sees growth in Q3, keeps outlook

*Wolters Kluwer maintains 2010 EBITA, EPS guidance

*Saw new subscriptions, improved retention rates in Q3

*Says on track to generate 125 mln euros in savings in 2010

(Adds details, CEO comments)

AMSTERDAM, Nov 3 (Reuters) - Dutch publisher Wolters Kluwer NV (WLSNc.AS) on Wednesday reiterated its full-year 2010 outlook on the back of strong subscription revenues growth, retention rates and cost cuts, in line with market expectations.

Wolters Kluwer, which publishes professional information in the legal, tax, and scientific fields, said it saw improved earnings before interest, tax and amortisation (EBITA) in the third quarter, boosted by higher revenues and sales of more profitable electronic products.

Subscription revenues, which represent 72 percent of the total, improved, especially electronic revenues, the company said in its third-quarter trading update.

Wolters Kluwer had already said EBITA margin, excluding special items, would be 20 to 21 percent, driven by a restructuring programme.

On Wednesday it said it was on track to make cost savings of 125 million euros ($174.3 million) this year, and kept its outlook for 2010 diluted ordinary earnings per share of 1.41 to 1.45 euros.

“Despite macro-economic uncertainty, we continue to invest for the future. In the third quarter, we made good progress by expanding our footprint globally,” Chief Executive Officer Nancy McKinstry said in a statement.

“We are confident that in the long run, this strategy will pay off,” McKinstry said.

Wolters Kluwer competes with Reed Elsevier (REL.L)ELSN.AS and Thomson Reuters (TRI.N) (TRI.TO).

Thomson Reuters raised its full-year revenue forecast last week after third-quarter revenue in its financial markets business rose for the first time in nearly two years. [ID:nN25279353].

Analysts had expected the Dutch publisher to reiterate its 2010 outlook on improving ordinary EBITA margin, strong free cash flow as investors look for improvements in print subscriptions and transactional activities, despite tough market conditions. (Reporting by Bate Felix; Editing by Sara Webb) ($1=.7172 Euro)

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