04. Education, information and entertainment in transformation Annual Report 2013 Santilana At the forefront of content and of educational and cultural services Since the Company was established more than 50 years ago, Santillana has consolidated its position as the most important educational and publishing group in the Spanish 58 and Portuguese-speaking markets, with a strong presence in almost all Spanish speaking countries, plus Brazil, Portugal, the USA and the the United Kingdom. Its operations on both sides of the Atlantic has enabled it to build bridges between Spain and Latin America, critical to the Group’s growth internationally. This factor has been decisive in countering the effects of an economic crisis that has affected and continues to affect Spain, significantly reducing the consumer spending. Despite this negative context, the Company’s geographic diversification has allowed the it to grow and launch new projects. Among these are Santillana Compartir and the Sistema UNO Internacional (UNO International System), both of which are integrated solutions fostering pedagogical innovation and change in schools. 2012 also saw the creation of new digital content and services targeted at multi-device use that will foster study outside the classroom, such as the website Tareas y más and Pupitre, one of our most successful Apps over the Christmas period. An element of uncertainty has been created in the Spanish market by the announcement of a new education law, the LOMCE (Organic Law for the Improvement of Educational Quality) whose entry into force will require Santillana to implement a new project that adapts to the new law and that is at the same time attractive and highly competitive. In the area of general-interest publishing, PRISA Ediciones has significantly increased its digital catalog, with about 3,000 titles from Spain and Latin America. It is also a pioneer in the publication of works in new advanced digital formats, such as iBooks Author and Fixed Layout, thereby offering the reader a more intuitive multimedia experience. The implementation in Latin America of iBookstore has boosted digital sales considerably across the region. Throughout 2012, Santillana published 8,896 new titles, bringing its in-print catalog to a total of 38,086, and the Company sold a total 125,608,000 books. Despite a difficult economic climate, Santillana reported record results, reinforcing the Company’s robust lead in the field of content and services for all levels of education. Operating income was 733.7 million euros (1.8 % more than in 2011), and EBITDA was 184.2 million (+8.2 %). This excellent result owes much to the significant growth experienced in Latin America, which reported a 5.4 % increase in revenue and 16.3 % in EBITDA. By country, the best results were from Mexico (+17.6 %), Ecuador (+23.3 %), Puerto Rico (+35.4 %), Dominican Republic (+43.3 %) and the U.S. (+41 %); as well as Argentina (+20.6 %), Central America (+27.3 %), Colombia (+3.4 %), Peru (+129.4 %), Bolivia (+16.1 %), Uruguay (+22.2 %) and Chile (+16,5 %), with a smaller contribution from Brazil due to its different education cycle. Education. Integrated solutions for the entire education community By business unit, Santillana Educación reported sales of 449.8 million euros (4.2 % less than 2011) and EBIT of 96.4 million euros (+ 3.2 %). Santillana is deeply committed to education, which we understand in a comprehensive and innovative fashion, that includes educational content and services aimed at the entire school community, based on technological innovation and bilingual education. The Sistema UNO, launched in 2011, perhaps best expresses this new way of addressing the educational challenges of the 21st century. During the 2012-2013 academic year, over 240,000 students from Mexico, Brazil and Colombia have studied using this innovative project, which has earned revenues of 42.5 million euros. Along the same lines, 2012 saw the launch of Santillana Compartir, a hybrid solution that integrates print texts, digital content and a training service for teachers, and Business areas
PRISA Annual Report 2013
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