Cengage EMEA reports 2016 results

Results filed at Companies House show that turnover at the Cengage Learning EMEA business for the year to end March 2016 rose 1.7% to £49m, up from £48.2m the previous year. However profit dropped from £4.2m to £3.8m.

Digital represented 40% of sales, up from 30.2% in the year to end March 2015.

As previously reported, Cengage as a whole saw adjusted revenue drop 2% to $1,640m in the 2016 fiscal year, but with strong growth in digital products.

The Cengage EMEA results report said: "The company will continue to invest in its indigenous publishing programme, particularly in digital media and adaptations. It will look to improve profit margins through vendor negotiations, consolidation of systems and processes and the cessation of unprofitable lines of business. There is ongoing and increasing focus on the ELT (English Language Teaching) and Gale (Library Reference) business units, with an investment in customer-facing staff and market appropriate content."

Commenting on the EMEA results for The Bookseller, Cengage chief financial officer John Leahy said that for the fiscal year 2016 Cengage International excluding Gale grew 2.1% "with strong full year performances in Asia, Australia, Europe, Middle East and Africa, validating our country specific approach to managing our International business." Growth in English Language Training was a key driver as well, he added.

Meanwhile, for the most recent quarter, ending September 30th 2016, Cengage's International business adjusted revenue rose $5.8m or 8.6%, he said, with year-to-date adjusted revenue for International is up $3.6m or 2.9%, led by strong higher-ed performance in the UK, India, and Australia.

Cengage recently announced an agreement with Tatweer Company for Educational Services (T4edu) to deliver professional development programs for Ministry of Education English teachers in the Kingdom of Saudi Arabia. Cengage will provide 1,000 teachers with online access to its National Geographic Learning ELTeach resource.