John Wiley & Sons Inc. (NYSE:JW.A) Q2 2017 Earnings Conference Call - Preliminary Transcript
Dec 07, 2016 • 10:00 am ET
Good morning and welcome to Wiley's Second Quarter Earnings Call. As a reminder this conference is being recorded. At this time, I'd like to introduce Wiley's Vice President of Investor Relations, Brian Campbell. Please go ahead.
Good morning, everyone and welcome to our second quarter 2017 earnings call which is being recorded and may include forward-looking statements. You shouldn't rely on these statements as actual results may differ materially and are subject to factors discussed in our filings with the SEC. The Company does not undertake any obligations to update or revise forward-looking statements to reflect any subsequent events or circumstances. For those who prefer to listen to the call over the phone, but still want to view the slides, we recommend that you click on the Gears icon located on the lower portion of the left-hand side window and select Live Phone.
This will eliminate any delays in viewing the slide transitions, as well as remove any potential background noise if you prefer to ask a question. After the call, a copy of the presentation and a playback of the webcast will be available on our Investor Relations page. I'll now turn the call over to Mark Allin, Wiley's President and CEO.
Thank you, Brian and good morning everyone. Also joining us is John Kritzmacher, CFO and Executive Vice President, Technology & Operations. I will speak to business performance, and John will follow with an update on operations, balance sheet, cash flow and outlook.
Before jumping into results, I should note that we changed our reporting this quarter to reflect our new business structure. The three new reporting segments are as follows: research, which largely consists of journals and our new acquisition Atypon. Publishing, which largely consists of books and related products, such as Course Workflow and Online Test Preparation and Solutions, which consists of our online program management, professional assessment, and corporate learning businesses comprised primarily of the acquisitions and learning and professional development which we've made in the last five years.
This move has allowed us to better focus our resources on our largest and most profitable business research. It allowed us to consolidate review and improve our book businesses under one global leader. And it has allowed us to invest in the growth opportunity in the solution space, while continuing to improve profitability over time. I will be excluding the impact of foreign exchange when commenting on all variances. Foreign exchange continues to be a headwind, particularly in light of the Brexit decision.
For the quarter, the unfavorable impact to revenue and EPS was approximately $15 million and $0.04 respectively. For the six months, it was unfavorable by $24 million and $0.07 respectively. Now on to results. Second quarter performance was positive with revenue up 2% and EPS up 3%. Our research business nearly 50% of revenue, showed solid growth in subscriptions and Author-Funded Access. Solutions continue to post double-digit top line growth and so much improved profit contribution. Publishing revenue was down 5% this quarter with