Reed Elsevier on track but subscription revenues stay low

Reed Elsevier confirmed it was still on track to meet its forecasts today but noted that any sustained recovery would be gradual as subscription revenues in professional markets remained weak.

The publishing and events group said overall trends in the first six months of the year had continued into the second half.

Subscription revenues in many of the professional markets remain constrained by low customer activity levels and budgets, while advertising, promotion and other cyclical markets continued to stabilise.

"Against a backdrop of constrained conditions in a number of our markets, I am pleased with the progress we are making in the development of the business," said chief executive Erik Engstrom.

Reed said underlying revenue growth at its academic publishing Elsevier unit would be lower than last year as education budgets remain constrained. Trends in legal markets have continued although subscription renewals in the US reflected lower levels of law firm activity.

The exhibition business was described as stabilising and it expects overall growth for the year.

"Reed Elsevier's financial position remains strong with good cash generation," the company said.