McGraw Hill Reports First Quarter Fiscal 2025 Financial Results
14 Agosto 2024 - 9:39AM
McGraw Hill today reported financial results for the first quarter
of fiscal year 2025, which ended June 30, 2024. Total billings
increased 22% to $578 million in the quarter versus prior year
driven by a robust market opportunity, with strong win rates within
K-12 and continued digital growth within Higher Education. Adjusted
EBITDA rose to $241 million, up 67% versus prior year due to strong
billings flow through and margin improvement as the company
continues its focus on efficiency in how it operates and delivers
content.
Digital billings increased 30% versus prior year to $324
million, and comprised 56% of total billings compared to 53% in the
first quarter of fiscal 2024. Higher Education digital billings
increased 15% above prior year, comprising 94% of total Higher
Education billings. The company continued to see growth in users
across its core Connect and ALEKS learning platforms with combined
14% and 8% growth in paid activations and unique users,
respectively.
"We're off to an exceptional start in fiscal year 2025,
delivering one of our best first quarters on record," said Simon
Allen, CEO of McGraw Hill. "Our teams executed brilliantly, driving
significant digital growth and capitalizing on key adoption
opportunities while remaining prudent on cost and investing in
future growth areas."
The company’s K-12 segment reported:
- Billings of $403 million, up 32% year-over-year, driven by a
larger on-list adoption market opportunity and execution in the
Texas science adoptions
- Strong performance in smaller state adoptions and California
ELA renewals
- Continued digital mix growth, reaching ~50% of adopted product,
the largest on record
The company’s Higher Education segment reported:
- Billings of $85 million, up 10% year-over-year despite a
seasonally small quarter for the business with digital
billings up 15% year-over-year
- Market share increase to a new record of 27.6%, up 124 basis
points year-over-year in the 12 months ending June 30th, according
to MPI (Market Publishers Index) data for higher education
publishers
- Inclusive Access sales growth of 25% compared to prior year
with a strong reach across ~1,800 campuses
The company’s Global Professional group reported:
- Billings down 9% year-over-year with growth in new
digital solutions offset by the strategic shift to
sunset non-core front list print titles
- A focus on efficiency and reinvestment in higher-margin digital
products
The company’s International segment reported:
- Billings increase of 7% year-over-year (up 10% on a constant
currency basis) driven by strong K-12 sales in key regions
- Digital billings unchanged year-over-year and up 7% on a
constant currency basis
“What sets McGraw Hill apart and positions us exceptionally well
for the future is the unique combination of cutting-edge thinking,
technology, best-in-class content and a deep understanding of the
entire learning journey,” Allen said. “We continue to invest in new
capabilities, including GenAI with new reading and writing tools to
be released in the months ahead, and we are excited for the
remainder of the fiscal year.”
McGraw HillMcGraw Hill is a leading global
education company that partners with millions of educators,
learners and professionals around the world. Recognizing their
diverse needs, we build trusted content, flexible tools and
powerful digital platforms to help them achieve success on their
own terms. Through our commitment to equity, accessibility and
inclusion, we foster a culture of belonging that respects and
reflects the diversity of the communities, learners and educators
we serve. McGraw Hill has over 30 offices across North America,
Asia, Australia, Europe, the Middle East and South America, and
makes its learning solutions for PreK-12, higher education,
professionals and others available in more than 80 languages. Visit
us at mheducation.com or find us
on Facebook, Instagram, LinkedIn or Twitter.
Contact:Tyler ReedMcGraw Hill(914)
512-4853tyler.reed@mheducation.com
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/6b6d52d1-6d5d-40b8-adf1-486fd0bd2d7b