Reed Elsevier shares rise after says 2008 on track

By Georgina Prodhan, European Media Correspondent

LONDON (Reuters) - Publisher Reed Elsevier said it was on track to meet its 2008 goals despite a more challenging economic backdrop, after first-half profit beat expectations, lifting its shares more than 5 percent.

Operating profit adjusted for amortisation, restructuring and integration costs rose 12 percent at constant currencies to 557 million pounds, Reed said on Thursday, or 619 million including discontinued operations.

Sales from continuing operations rose 5 percent at constant currencies to 1.97 billion pounds, driven by strong growth in online information and so-called workflow solutions embedded in the way that customers work, Reed said.

As well as trade journals and books for professionals, Reed owns the world's biggest exhibitions business, which had a strong first half with adjusted operating profit up 16 percent and sales up 9 percent at constant currencies.

"Whilst the professional markets we serve are not immune to economic cycle effects, they are more resilient than most," Reed said in a statement.

"We remain on track to deliver on our goals this year of good revenue growth, meaningful margin improvement and accelerated earnings growth."

Shares in the Anglo-Dutch group rose 5.3 percent in London (REL.L) to 573-1/2 pence and 4.4 percent in Amsterdam (ELSN.AS) to 10.62 euros by 10:09 a.m., outperforming a flat DJ Stoxx European media index .SXMP.

"Reed has reported very strong interim results ... ahead of our, and market estimates," analysts at brokerage Numis wrote in a note.