The Klett Group is Germany’s leading private provider of educational and continued education services, with 61 subsidiaries at 36 locations in 14 countries. The company’s portfolio comprises traditional textbooks, digital interactive learning solutions, professional literature, and fiction.

Analysis & Key Developments

Financial
Klett, achieved a moderate growth of 450 million EUR in 2013 with a turnover of 0.7%, up from 447 million EUR in 2012. Profit before taxes remained constant at the previous year's level of 13 million EUR.

With 52.8%, educational publishing generated the largest share of corporate revenue. Here, Klett’s imprints held their position in the market despite the stagnating education market. Adult and continued education accounted for 29.2%, Professional Information 12.4%, and trade covered 4.3% with an additional sales boost for the Klett-Cotta imprint after the film release of The Hobbit.

Demand for continued education through Klett's distance learning schools remains constant. Klett’s specialist distance learning schools recorded a further year of growth, with high demand for the group's schools, crèches and day-care centres.

Ownership, mergers & acquisition, internal organization
In January 2014, Klett sold its children’s book publisher Esslinger to the Bonnier Group.

Earlier Developments

Financial
Revenues in 2012 declined slightly, following a continuous decline since 2009 along with profits, due to difficulties in the German educational market.

The Klett Group announced a “satisfactory year” for 2011 despite a weaker performance against 2010, with declines both in group revenues (from 465 millon EUR in 2010 to 457 millon EUR in 2011) and profits (falling from 21millon EUR to 17 million EUR.
Even though educational publications were confronted with a difficult market environment and continuously declining student numbers, the segment remained on target both domestically and internationally. Consistent growth rates were among childcare facilities, kindergartens, schools and adult education providers.

“The drop in revenues and the decline in profits in comparison to 2010 can be attributed to positive special effects, the benefits of which were most evident in 2010. This includes, for example, the sale of Giesel Publishing,” explains Philipp Haußmann, spokesman for the Ernst Klett AG Management Board. “Adjusted for these effects, 2011 turned out to be a solid fiscal year marked by positive developments in our business units.”

Group revenues comprise several single businesses such as Educational Publishing (50.8%), Adult and Continued Education (30.4%), Professional Information (12.3%), Cultural Publications (4.4%), Sales and Distribution (1%), and Other (1.1%).

Ownership, mergers & acquisition, internal organization
Klett sold Forum Institut für Management in Heidelberg in 2012.

In early 2013, Klett acquired a learning program from Langenscheidt in order to expand in the segment of German training courses for non-native German speakers.

Long time CFO Arthur Zimmermann moved to the advisory board, while Stefan Hartl was appointed financial director.

Digital
Klett has started to increase investments in the digital media segment. The Group also intends to further expand its portfolio for schools, kindergartens and childcare facilities, followed by adult education.

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