Anglo-Dutch publisher and information group Reed Elsevier PLC (ENL, RUK) Thursday said it expects to achieve earnings growth in 2009 after it reported a better-than-expected rise in revenue in 2008.

The company said professional markets, like law and medicine, that it serves with Elsevier and LexisNexis are proving resilient, if not immune, to the economic downturn.

However, Chief Executive Crispin Davis warned that falling demand for advertising and marketing in its business-to-business markets meant that unit would show "a significant profit decline" in 2009.

Overall, the company still expects earnings growth this year when acquisitions and disposals and currency movements are excluded.

The outlook and better-than-expected revenue growth buoyed the company's shares, and at 0839 GMT, the stock was up 26 pence, or 5%, at 546 pence in London, outperforming a 0.2% rise in the FTSE 100.

"The fact that they've guided for growth is as good as the market could have expected," said RBS analyst Paul Gooden.

Revenue for the year rose 16.4% to GBP5.33 billion compared with GBP4.58 billion last year, beating a Factset survey of 19 analysts which forecast revenue at GBP5.2 billion.

Net profit for the full year fell 61% to GBP241 million compared with GBP624 million last year, but the 2007 result was boosted by the sale of Harcourt Education for GBP2 billion.

The company said its $30 million cost saving plan for 2008 had been successful and that its target of $200 million annual savings by 2011 was "on track".

It has expanded the program to include Reed Business Information, so that it has an additional target of annual savings of $150 million by 2011.

Reed Elsevier had planned to sell RBI, publisher of New Scientist and Variety, last year, but difficult credit markets and falling valuations had more than halved the expected price tag and in December the company ultimately decided that the terms of the transaction weren't acceptable. The unit had originally been valued at GBP1.25 billion.

Davis will step down as the company's Chief Executive in March and will be replaced by Ian Smith, previously CEO at U.K. house builder Taylor Woodrow PLC (TW.LN).

Reed Elsevier shares have fallen only marginally in the last year as the company is viewed as a relatively resilient media stock due to its focus on professional publishing.

Company Web site: www.reed-elsevier.com

-By Erica Herrero-Martinez, Dow Jones Newswires; 44 20 7842 9353; erica.herrero-martinez@dowjones.com