Pearson released a brief trading update for the fourth quarter and the full year 2024, and announced an AI partnership with Microsoft. Pearson and Microsoft will release a series of educational tools designed to help people build AI skills “through new AI credentials and certifications.” The companies will also collaborate on a series of AI tools to build workforce skills and learn the English language. Pearson will also expand their use of Microsoft’s AI Copilot tool “across its workforce.” They say in a release, “This is part of an ongoing effort to introduce workplace AI tools that enhance efficiency, creativity, […]
Publishers
Scholastic Institutes Layoffs As Sales Fall in Q2
Scholastic reported financial results for the second quarter ended November 30, with sales of $545 million, down 3 percent, an expected outcome due to the timing of the company’s big book publications. Operating income dropped 26 percent to $74.4 million with adjusted EBITDA down 12 percent to $108.7 million due to lower sales in the children’s publishing and distribution and education solutions segments. In Children’s Publishing and Distribution, sales were down 6 percent to $367 million with operating income down 9 percent to $102.1 million. Trade books sold $103 in the quarter, down 13 percent, due to lower frontlist sales […]
Wiley Looks Toward “Continuous Improvement”
Wiley announced results for the second quarter ended October 31, reporting sales of $427 million, down 13 percent due to the loss of revenue from divested businesses. Operating income grew 39 percent to $64 million. President and ceo Matthew Kissner said, “Continuous improvement is a way of life for us now, and it’s beginning to pay off in our quality growth and margin expansion. Learning has had a good year so far, both academic and professional, and research delivered low-single digit growth with leading indicators and favorable comparisons signaling a better second half ahead.” Notably, Kissner also said, “Additionally, we […]
High Street Will Continue to Become A Smaller Segment at WH Smith
On Thursday, British retailer WH Smith reported sales for the full year ended August 31. For the year, sales rose 7 percent to £1.918 billion with profit before tax and non-underlying items up 16 percent to £166 million. High street sales were “in line with expectations” at £452 million, down 4 percent from £469 million. Profit of £39 million was down from £43 million a year ago. The company made plain what has been clear for a while from their results and their strategy: As they grow the travel business, the high street division—which accounts for about 15 percent of […]
PRH Helps Bertelsmann’s Organic Growth
Bertelsmann released a brief financial update on the first nine months of the year. In the third quarter, Bertelsmann’s sales were approximately €4.4 billion ($4.66 billion at current exchange rates), compared to €4.9 billion last year. They say top titles in the quarter for Penguin Random House were Nicholas Sparks’ Counting Miracles (published in Germany and referred to in the release as Our Time of Wonder) and Yuval Noah Harari’s Nexus. For the year-to-date, the company’s sales were down 8.4 percent to €13.4 billion ($14.2 billion), still attributed to the sale of Majorel. Organic growth for the year stands at […]
Higher Ed Sales Grow in Pearson’s Third Quarter
Pearson released a trading update for the third quarter, reporting that overall sales were up 4 percent. They note that all segments grew in the quarter, including Higher Education, which had been on the decline. Sales for the Higher Education business, which includes textbooks, were up 4 percent in the quarter, “driven by the operational and business changes implemented over the past 18 months.” In the US, the gains were due to increased adoptions, enrollment, and pricing. The company expects the segment to reflect growth for the full year. “Pearson is delivering on the three priorities for 2024 that I […]