Scholastic reports 7% drop in revenue

Scholastic has reported a 7% decrease in revenue for the year ending 31 May 2024, reports Publishers Weekly.

For the full year, revenue dropped to US$1.6 billion (A$2.4b), from $US 1.7 billion (A$2.5b) reported for the previous year, and adjusted EBITDA decreased to US$136.9 million (A$204.3m) from $US196.3 million (A$293m) for the period.

For the fourth quarter, the company reported that, excluding unfavourable foreign currency exchange, its international revenues declined 4% or US$2.7 million (A$4m), ‘resulting from lower trade channel sales in Asia and Australia’, a drop that was partially offset by increased revenues in UK book fairs. The international division posted an operating income loss of $US800,000 (A$1.2m) for the quarter (although this included US$2.6 million (A$3.9m) in one-time charges), which was down on the operating income profit of US$2.2 million (A$3.3m) in the prior year. For the year, the international division posted an operating income loss of $US6.9 million (A$10.3m) following a loss of $US3.6 million (A$5.4m) the previous year.

For the business as a whole, Scholastic CEO and president Peter Warwick said ‘a slowdown in supplemental curriculum purchases by schools and increasing pressure on consumer spending’ had cut into expected sales in Scholastic’s education and book fair businesses in its ‘seasonally important fourth quarter’.

Category: International news