Total revenue increased 4% at McGraw-Hill Global Education in 2014, rising to $1.29 billion. In 2013, total revenue was $1.24 billion. The company, which encompasses the higher education, professional and international groups, had net income of $3.8 million last year, compared to a loss of $89.4 million in 2013. Sales rose in MHGE’s digital and custom print operations, but fell in print. Overall, digital sales were $401 million in 2014 and accounted for 31% of total sales up from 27% in 2013.
Sales in the higher education group rose 9%, to $840.5 million, due to higher digital and custom print businesses as well as the 2013 purchase of the adaptive learning company ALEKS.
Sales in the professional group were flat at $116. 8 million, which also reflected a gain in digital sales offset by a decline in print. MHGE said the professional group generated 43% of its revenue from “digital solutions” last year which included digital sales through 19 subscription services. The professional group’s largest markets are professional and business, which had total sales of $46 million in both 2014 and 2013, and healthcare and social assistance, which had revenue of $54 million in 2014, up from $51 million in 2013.
Sales in the international division fell 4%, to $333.8 million, due to sales declines in Latin America and EMEA.
McGraw-Hill Global Education is controlled by McGraw-Hill Education Intermediate Holdings, a company formed in March 2013 when Apollo Global Management, the private equity firm that acquired McGraw-Hill Education in early 2013, divided the global education segment from the school education group; revenue from the school group is not included in results from MHGE.