- Encouraging start to the year despite challenging market conditions, with underlying revenue growth of 5% reflecting good progress as we reposition Pearson for sustainable growth with a strong direct to consumer focus.
- Global Online Learning up 25%,with strong growth in Virtual Schools due to enrollment growth in the current school year in Partner Schools as well as in US district partnerships; modest growth in OPM due to ongoing impact of discontinued programs.
- Global Assessment down 2%, as strong recovery in Professional Certification and US Clinical Assessment was more than offset by US School Assessment, where revenue was down significantly due to the challenging comparative and reuse of material from cancelled exams
Other higher ed publishers are also showing encouraging results led by McGraw Hill which looks like it is going through a significant reinvention. The company has not released detailed year end numbers but yesterday they did release an overview on their performance. Some bullets from this presentation:
- 58% increase in their "Inclusive Access" program which provides day one content for all enrolled students. This business represents $167mm in revenue
- The mix between print and digital is now 28%/72% which shows a 10point decline year over year. Obviously not only a market trend but a strategic imperative for the company to move more revenue to digital
- The company saw double digit growth in digital billings to $1B with EBITDA of $440mm
Cengage reported their 9mth numbers back in Feb and will not report full year until June. Total revenues were down 10% however net income is significantly better at $60mm
Wiley's education business has also struggled over the most recent past while the rest of the business expand both revenue and profit. For the 9mths reported in March publishing revenue was down 4% but EBITDA was slightly higher up 2% (although additional business units also fed that number).
No comments:
Post a Comment