The McGraw-Hill Companies Reports 11.9% Growth in 2nd Quarter
In a seasonally slow period for higher education, the continued success of digital products was key to a modest gain in the U.S. college and university market. There has been a significant market response to McGraw-Hill Connect, the industry's most advanced homework management and study system. McGraw-Hill Connect seamlessly integrates into the widely used Blackboard learning management system, providing quick, easy access to an array of resources while improving workflow for both faculty and students.
In professional publishing, the double-digit growth of digital products and services again offset softness in traditional retail channels. Digital products launched in the second quarter included AccessPediatrics, a new specialty site which joined the AccessMedicine suite of digital subscription products and the McGraw-Hill eBook Library, a global platform offering institutional and individual customers unlimited concurrent access to more than 1,000 e-book titles in medicine, business, and engineering/computing, along with student study skills and test preparation. Twenty-five new mobile applications were also released, bringing the total apps available for purchase to 177.
The best-selling e-books from professional publishing during the second quarter of 2011 were:
• Patterson et al., Crucial Conversations
• Fabozzi, The Handbook of Fixed Income Securities
• Lowndes, How to Talk to Anyone, 2nd edition
• Patterson et al., Influencer: The Power to Change Anything
• Gallo, The Presentation Secrets of Steve Jobs
Revenue in international markets was up modestly, the result of favorable foreign exchange rates and higher sales in India, Africa and Canada, which were partially offset by slower sales in Asia.
Information & Media: Revenue for this segment grew by 9.7% to $246.0 million and operating profit increased by 5.9% to $50.3 million in the second quarter of 2011 compared to the same period last year. Foreign exchange rates unfavorably affected operating profit by $0.9 million in the second quarter as did the acquisition of Bentek Energy in January. Also impacting operating income were nonrecurring items from a write-off of deferred costs, which were largely offset by a gain on the sale of the Company's interest in the LinkedIn Corporation.