Scholastic lowers revenue forecast

Scholastic lowers revenue forecast

Scholastic Corp has lowered its 2019 revenue forecast to $1.64bn (£1.26bn), down from previous estimates of $1.65-1.7bn (£1.3-1.34bn), for the financial year ending 31st May 2019.

Adjusted EBITDA has also been downgraded to $120-130m (£95-103m). The EBITDA will be adversely affected because of an accounting change to the book fairs incentive programme, which had not previously been included in the company’s prior outlook.

Scholastic said it revised its estimates because because of certain factors affecting its children’s book publishing and distribution segment. It implemented a new tax collection programme and expenses were higher than planned in the book fairs division.

The company’s full year results will be released in July.