Scholastic reports annual revenue rise of 2%

Scholastic reports annual revenue rise of 2%

Scholastic Inc said revenues for the full-year ending 31st May 2016 totalled $1.67bn (£1.26bn), up 2% from $1.64bn (£1.24bn) the year before. However, international operating income was down 44%, hampered in part by a foreign currency adjustment of $43.2m (£32.7m).

The US-based publisher said the positive revenue result was thanks to higher sales in its children’s book publishing and distribution and education segments.

"Our strong fiscal 2016 results, including double-digit growth in operating income for the year, demonstrate the success of our strategy to closely align the children's book and education businesses globally to serve the changing needs of our educator, parent and child customers," said chairman, president and c.e.o. Richard Robinson.

Operating income from continuing operations was $93.4m (£70.7m), up 17% from the prior year.  

However, the international division, which includes Scholastic UK, was adversely impacted by the impact of foreign currency exchanges. Revenue for the year was down 7% to $372.2m (£281.7m), compared to $401.2m (£303.7m) in the prior year. Segment operating income in fiscal 2016 was $11.4m (£8.6m), 44% less than £20.6m (£15.6m) in 2015.

In the fourth quarter, Scholastic Inc’s overall revenues increased 5% to $513.8m (£388.9m), whilst operating income was up 74% to $58.4m ($44.2m).

Looking forward to 2017, the company said it was “excited” about its new Harry Potter publishing and expanding its education business. It also promised to improve profitability in international markets, especially in Asia, where the company is growing year-on-year in local currency terms.