We focus on K12

We focus on K12

Our learning business supports more than 25 million K12 students (ie. 6-18 year-olds) in 12 European countries. Sanoma Learning's market share of the European education market is ~16%.

Teachers and schools are our primary customers

  • Teachers are key decision-makers on which learning content to use
  • In our operating countries, learning content is largely publicly funded and typically represents 1−3% of public education spend

Our learning services provide teachers with everything they need

  • Printed and digital learning content created together with teachers and matching the local curriculum
  • Digital learning platforms, either linked to our content or open
  • Content distribution services

Our content has a positive impact on learning outcomes

  • Inclusive learning materials promote equal learning opportunities and support diversity and differentiation 
K12 is a stable and resilient market

K12 is a stable and resilient market

Stable population of approx. 75 million students in Europe corresponds to a market size of 4-5bn€.

 

Public spending on education is increasing, while spend per student varies between countries. Market is significantly fragmented and barriers to entry are high due to the localised nature.

 

K12 market is stable and predictable as teachers typically consider changing the learning materials only every 48 years.

Our best-in-class digital platforms and footprint in highly digitalised countries with high-quality learning outcomes give us unique benefits of scale.

Digitalisation within education is accelerating

  • Helping to drive market consolidation
  • Generating more stable revenue streams and higher profitability
  • Offering better scalability

Sanoma Learning has been successfully built through M&A

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Key figures 2021

m€

Net sales

%

Operational EBIT margin excl. PPA

m

students

employees

Strategic levers supporting our growth ambitions

1. Grow market share by continuing to win in local markets

  • In 2021-2025, underlying growth for learning content in Sanoma's operating markets is expected to be modest

Curriculum renewals.PNG

  • To reach our long-term comparable growth target of 2-5%, we aim to increase our market share especially in connection to curriculum renewals and by expanding our portfolio

2. Increase value per student by moving towards a subscription model

  • K12 learning services market is shifting towards a subscription model
  • The model allows, and requires, greater integration of printed and digital products and services
  • The subscription model offers benefits for all:
    • Students: more up-to-date materials, each student can retain the book
    • Schools: stable and predictable cost of learning content
    • Distributors: lower costs with no return flows
    • Sanoma Learning: reduced second-hand market, more efficient content creation and more predictable sales
  • Our ambition is toincrease the share of subscription in net sales to above 50% (2019: 25%)
  • We aim to move to the subscription model in all our operating countries, but the pace varies by country

3. Grow learning business further through M&A

  • In M&A, continued focus on K12 learning services
  • Looking for opportunities to enter new geographies and expand our offering in current markets both in learning content and digital platforms
  • Ongoing consolidation driven e.g. by digitalisation in a fragmented market
    • Annual demand for K12 learning services in Europe approx. 4-5bn€
    • Sanoma Learning is the leading player with a market share of approx. 16%