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McGraw Hill Reports Fiscal Second Quarter and Year-to-Date Fiscal 2023 Financial Results
26% year-to-date billings growth Digital-first strategy continues to yield strong results with digital billings of $842 million, a year-to-year increase of 28% in the first half of fiscal year 2023
COLUMBUS, Ohio – November 29, 2022 – McGraw Hill, a leading global education company, today reported financial results for the first two quarters of fiscal year 2023, ending in September, with 26% growth in billings to $1.5 billion and 29% growth in adjusted EBITDA to $769 million.
"We're excited about the momentum we have generated in the first two quarters of the fiscal year with strong billings growth, increased profitability, and market share gains in key markets as we support educators and learners on their unique learning paths," said Simon Allen, McGraw Hill CEO. "We believe our ongoing, disciplined investments in our digital capabilities continue to serve us well and contributed to a successful back to school season."
As a result of its ongoing digital investment and innovation, the Company launched Sharpen, a direct-to-student study app which complements students' course experience to improve outcomes during the back to school season.
For the year-to-date period, McGraw Hill's K-12 group reported a 49% increase in billings, fueled by market share gains and increased education funding arising from federal fiscal stimulus programs. Digital billings grew 68% to $439 million, driven by supplemental offerings, including the acquisition of Achieve3000, that are increasingly sought by school districts to combat learning loss post-pandemic.
In Higher Education, digital billings grew to 85% of total billings and Inclusive Access revenue grew 30% in the year-to-date period, with Inclusive Access now reaching nearly 1,500 college campuses. Inclusive Access provides course materials to students by the first day of class at a cost that is as much as 70% lower than traditional print. Total billings decreased in line with an estimated 2% enrollment decline in the Fall 2022 term.
Despite a negative impact from foreign exchange rates, International and Global Professional reported results that held steady versus the prior year period with billings increasing 2% and decreasing 1%, respectively.
McGraw Hill is a leading global education company that partners with millions of educators, learners and professionals around the world. Recognizing their diverse needs, we build trusted content, flexible tools and powerful digital platforms to help them achieve success on their own terms. Through our commitment to equity, accessibility and inclusion, we foster a culture of belonging that respects and reflects the diversity of the communities, learners and educators we serve. McGraw Hill has over 40 offices across North America, Asia, Australia, Europe, the Middle East and South America, and makes its learning solutions for PreK–12, higher education, professionals and others available in more than 80 languages. Visit us at mheducation.com or find us on Facebook, Instagram, LinkedIn, or Twitter.