John Wiley & Sons Reports $404.6M Revenue Decline, Operating Income Improvement in Latest Quarter

John Wiley & Sons, Inc. reported a consolidated revenue of $404.6 million for the three months ended January 31, 2025, reflecting a 12% decrease compared to the same period last year. The decline in revenue is attributed to the divestiture of several non-core businesses, including University Services, Wiley Edge, and CrossKnowledge. Despite the overall revenue drop, the company achieved an operating income of $51.8 million, a significant improvement from the operating loss of $46.4 million reported in the prior year. The diluted loss per share was $(0.43), an increase of $1.65 per share from the previous year's loss of $(2.08).

In the nine months ending January 31, 2025, Wiley's total revenue also decreased by 12% to $1.235 billion. However, when excluding the revenues from the divested segments, adjusted revenue increased by 3% on a constant currency basis. The company reported an operating income of $144.9 million, a substantial increase from the prior year's loss of $16.5 million. The diluted earnings per share for this period was $0.29, compared to a loss of $(4.10) per share in the previous year.

Wiley has been actively restructuring its operations, which included a global restructuring program initiated in fiscal year 2023. This program aims to streamline operations and focus on core business areas, resulting in a reduction of real estate occupancy by approximately 35%. The company recorded restructuring and related charges of $5.6 million for the three months ended January 31, 2025, down from $14.8 million in the same period last year. The restructuring efforts are expected to yield annualized cost savings of around $90 million.

Operationally, Wiley's Research segment reported a revenue increase of 4% to $267.5 million for the three months ended January 31, 2025, driven by growth in author-funded open access and content rights projects. The Learning segment, however, saw a revenue decline of 6% to $137.1 million, primarily due to lower licensing revenue and decreased digital content sales. The company continues to focus on enhancing its digital offerings, with over 83% of its revenue for the year ended April 30, 2024, generated from digital products and services.

Looking ahead, Wiley remains optimistic about its growth prospects, particularly in the Research and Learning segments. The company plans to leverage its strong market position and ongoing investments in technology and digital content to drive future growth. The management anticipates that the restructuring initiatives will further enhance operational efficiency and profitability in the coming quarters.