McGraw-Hill Education is comprised of two divisions: The School Education Group (SEG), which provides education material for the elementary and high school; and the Higher Education, Professional and International Group (HPI), which serves the college, university, professional, international and adult education market.
Key company developments in 2011 & first half of 2012
SEG's financial performance is dependent on adoptions. Following an adoptions decline in 2011, the company decided to participate in fewer subjects, thereby decreasing revenue from $1.11 billion to $949 million.
HDI Group saw an increase in digital sales and subscriptions, which offset print declines. The Homework Management product line, under McGraw-Hill Connect, was a key driver.
Ownership, mergers & acquisition, internal organization:
The McGraw-Hill Companies separated into two new companies: McGraw-Hill Financial, which operates Standard & Poor's financial services; and McGraw-Hill Education, which serves the educational material. There are considerations pending to sell off Education by year end 2012.
McGraw-Hill Education formed a joint venture with New Oriental in China to develop MaxEn Centres, which applies McGraw-Hill’s assessments for English-language instruction to the Chinese market.
Revenue from international operations were lower in Asia, Europe, the Middle East and Africa, though markets in Latin America, India, and Canada performed well.
Identifying digital transformation as its number one aim, McGraw-Hill continues to focus on the development of digital learning platforms such as Connect, which has three million registered users worldwide. The company recorded an increased growth in higher education and professional publishing. US sales of electronic content in the higher education market gained more than 40% over prior year results, 20% of the total higher education revenue. HPI's digital products and services represent nearly 30% of the revenue.
After to an agreement with Apple, five math and science textbooks will be available on the iPad. McGraw-Hill Education has already developed interactive high school programs for the device.
Bestselling authors & titles:
Key points for analysis & conclusions:
Note: Figures are based on sales generated in calendar 2011 or—for corporations with a fiscal year—from fiscal 2011. Data are from publicly available sources and include sales of books, journals, and digital products. Because publishing data were unavailable, Pannini and Disney/Hyperion are excluded from the rankings. The listing and publisher profiles were compiled by international publishing consultant Rudiger Wischenbart under the aegis of Livres Hebdo.