Cengage revenues down due to ‘significant volatility’ in higher education
Cengage Learning has reported a 10% decline in adjusted revenues to US$1.5bn (A$2.0bn) in the fiscal year 2017 (ending 31 March), reports the Bookseller.
The decline was particularly strong in the company’s higher education business, with adjusted revenues down 15% to US$978m (A$1,323m) due to a weakness in print sales.
CEO Michael Hansen said there had been ‘significant volatility’ in the higher education industry, which has been affected by a fall in student enrolments, changes in student purchasing behaviour and ‘temporary impacts from channel ordering trends’.
Hansen said, ‘Students continue to look for the most affordable solutions, moving away from purchasing new texts and towards the lowest cost options, often an ebook, rental or used book.’
‘Based on our data, rental has grown at a steady pace of about seven percent year over year; however within the rental market, there is a shift away from current edition rentals to renting prior edition texts. This negatively impacts the sale of new textbooks to the rental providers.’
Hansen said the company aims to be 90% digital in its higher education business by 2020.
Cengage will release its annual report later this month.
Category: International news