Category Archives: Financial Results

Sanoma Learning 2015: taking the right steps to prepare ourselves for the future

the-story-of-sanoma-learning-image

Following the announcement of Sanoma’s 2015 financial results earlier this week, I would like to share with you some of the operational highlights from Learning.  There is a short video summary of it here too.

Engaged customers and colleagues

We engaged with about 10 million pupils and 1 million teachers across Northern Europe, helping pupils to develop their talents and teachers to excel as professionals. We invested heavily to strengthen our position as a leader in the digital transformation. Thank you to our customers for your trust in us, and also to our people for your good work throughout the year!

Good progress on the (digital) transformation

We made good progress on the digital transformation and achieved 15% organic growth in new media sales in our footprint compared with previous year, showing new media sales growth in all of our footprint markets. The number of users and time spent per user increased significantly across our digital offerings. Also we took great steps forward with our co-development program including exporting bingel from Flanders to Wallonia, Sweden and Finland. We realized double-digit growth in market share in Poland with an excellent performance from the team at Nowa Era. The profitability of our core markets was solid, although overall profits were impacted by cleaning up legacy positions at YDP.

Making a positive impact on learning

In 2015 we introduced Sanoma Learning’s Impact Framework which helps us to measure the benefits our solutions bring to our customers. Through the SLIF, we have learned:
95% of teachers reported that our materials help them in enabling pupils to achieve their learning goals
85% of teachers reported that our methods help them with engaging pupils with learning
Teachers typically save about 8 hours of working time each week by using our solutions
I believe this is excellent evidence of the value we bring to education.

Van In realized an outstanding performance across a broad range of indicators including higher sales, market share, digital sales and digital usage. Great job by the team at Van In! Bingel prospered and won the prestigious “International Educational Learning Resources Award 2015” in London and together with Diddit “ICT Project of the Year 2015” in Belgium. New platforms Diddit and Wazzou have been launched in Flanders and Wallonia. Together with SchoolOnline and bingel, they have helped us to win in the market. YDP is now starting to look at taking bingel into new international markets.

Nowa Era achieved double-digit growth in market share, driven by the new business model and a strong operational performance. I am super proud about how the team has dealt with the extremely difficult market conditions resulting from the new legislation. In addition to this, winning in new segments such as exam preparation has brought us access to new markets. Vulcan has performed well and shows good potential for cooperation with Nowa Era in creating new offerings for schools.

Malmberg had a solid year. Good progress was made on the digital transformation, especially with the adoption of new offerings from VOoruit in secondary education. Bureau ICE made an excellent overall performance and it was brilliant to see their success in winning more than 30.000 customers for the IEP Eindtoets. Great job! Our first adaptive course JUMP! – created in cooperation with Knewton – has now gone to market and the early results are promising. I also very much appreciate the important role Malmberg plays in our co-development agenda, including the Editorial Tooling Suite Sanoma Learning (ETSL), Testing and Assessment platform (TEAS) and Edubase. Thank you!

Sanoma Pro faced a smaller market in advance of the broad-based curriculum reform starting in 2016. A big part of the plan for 2015 was to prepare ourselves for this new curriculum. We’re looking forward to bringing our new generation of multi-channel methods, including TEAS and bingel, to the market this year!

At Sanoma Utbildning our positions in secondary education and Swedish for immigrants performed well. Bingel is getting good traction with customers. Through the investments we are making in new learning platform Fox (built on Edubase and populated with content created with ETSL), we believe we are taking the right steps to re-position ourselves for future growth.

At YDP we hired an excellent new Managing Director who has formed a strong new management team which has addressed legacy issues and has made a financial clean-up. This team is now building a new product offering, a new commercial approach, and a leaner organization structure, to prepare ourselves for future growth. As a result of these actions we are optimistic that we will be able to improve performance and profitability at YDP in 2016 when compared with 2015.

2016: focus on winning in challenging markets

Last year we have taken the right steps to prepare ourselves for the future. We are using technology to bring more value to our customers. We will continue investing in new multichannel methods across our markets. And we’re bringing together content and workflow functionalities, to help pupils and teachers in ways that really work.

Proud of the teams

I’m proud of what our teams have achieved in 2015. I want to thank you for your good and hard work and look forward to working together with you in 2016!

2014 Results Sanoma Learning – good progress as frontrunner on the digital transformation

sanoma-learningFollowing the announcement of Sanoma’s full-year results earlier today, I’m pleased to share with you that Sanoma Learning delivered a good performance in 2014. Thank you to our customers for your trust in us, and thank you to our people for your contribution in making this happen!

We engaged with about 10 million pupils and 1 million teachers across Northern Europe, helping pupils to develop their talents and teachers to excel as professionals. We looked ahead and invested heavily to strengthen our position as a leader in the digital transformation. We created some new opportunities in big emerging markets, like China.  And we built new teams to lead Sanoma Learning into the future.

Sales of digital and services grew by about 15%, to more than € 50m for the first time in our history, underpinning top-line organic sales growth of 1%. Our profitability was strong with a margin of 17.6%, excluding non-recurring items but including heavy investments in the future. Around half of our business now plays on digital or multi-channel format, making us maybe continental Europe’s biggest EdTech company in K-12 education today!

Good progress locally

Malmberg in The Netherlands launched five major initiatives in primary, secondary & vocational education and in testing & assessment, giving us a strong position in the market and leading to good sales growth.

Nowa Era is executing a new strategy to address the legislative changes in Poland. Under these challenging circumstances we still delivered organic growth. Amongst others, the new exam preparation offering was a big success.

At Sanoma Pro, we built a new and digitally skilled team that has developed a multi-channel strategy to drive our transformation in preparation for the new curriculum in 2016 in Finland.

Van In in Belgium once again delivered top line sales growth, driven by a strong performance in primary education (supported by our winning gamified exercise platform, Bingel) and is now building a solution for differentiated learning in secondary education.

At Sanoma Utbildning we took big steps with our digital transformation strategy and are preparing ourselves for the next generation in Sweden.

Looking internationally, Young Digital Planet realised four deals bigger than € 1m in emerging markets, planting seeds the seeds for future growth.

Our focus for 2015

Digital is going to be very important for the future of education in all of our markets. We will invest strongly in new multi-channel offerings and our capabilities (such as the co-development program) to bring them to the market, so that we go a step further in helping teachers to excel as professionals and pupils to get the best possible learning outcomes.

We intend to make use of our reputation as leader in the world’s best performing education systems and a frontrunner on the digital transformation and will strive to establish a partnership with a local player in an emerging market to boost our opportunities for growth.

And last but not least, we intend to stay in robust financial and operational health, by winning in the market and taking care of the costs as we do it.

Respect!

I’m proud of our people at Sanoma Learning! I want to thank you again for your good and hard work and look forward to working together with you this year. Respect!