Springer Nature profits up 7 per cent to €512 million
Springer Nature has announced its results for the financial year 2024. Revenue was €1,847 million, representing, on an underlying[1] basis, a 5% increase over the same period in 2023. Adjusted operating profit increased to €512 million, equating to underlying[1] growth of 7%.
Frank Vrancken Peeters, CEO of Springer Nature, said: “Our strong results demonstrate our ability to consistently deliver value for our communities while driving innovation in the academic publishing industry. We publish an ever-increasing amount of high-quality open access content and invest in technology and people to ensure we consistently outperform the market while growing responsibly and sustainably.”
Springer Nature says the research segment continues to be the main driver of its growth. Research saw a 6% underlying[3] revenue growth to €1,414 million, primarily due to the performance of the OA Journals portfolio. The company published 50% of its primary research articles OA for the first time.
The education segment supported overall growth, with revenue increasing 3% on an underlying[3] basis to €235 million. This was driven by strong sales in India and South Africa. The health segment’s revenue was €188 million, which was broadly stable on an underlying[3] basis compared to the previous year.
A decline in advertising revenue due to cautious spending from the pharma industry and the impact of changes in German health insurance legislation was offset by strong revenue growth in Cureus.
Springer Nature says it continued to make significant investments in technology and AI to improve and accelerate the publishing process and ensure that the research it publishes is robust and can be trusted. In 2024, technology-related investments totalled €177 million.
Alexandra Dambeck, CFO of Springer Nature, said: “We are pleased with our business and financial performance in 2024, which reflects our strategic focus on high-growth areas and operational efficiency. Our strong free cash flow and reduced financial leverage position us well for future growth and continued investment in innovation for our communities.”
On the basis of Springer Nature’s underlying performance in 2024 and updated foreign currency rates, the company says revenue for 2025 is expected in the range of €1,885 million to €1,935 million[2] and the adjusted operating profit margin at least at the level of 2024.
[1] Underlying change excludes effects from year-on-year changes in foreign currencies and portfolio. In reported terms, 2023 revenue was €1,853 million and adjusted operating profit was €511 million.
[2] Guidance compares with an underlying revenue figure of €1,835 million for 2024.
[3] Underlying change excludes effects from year-on-year changes in foreign currencies and portfolio.
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