Once upon a time, a company grew up to become one of the world's leading children's book publishers. Scholastic Corporation sells books to children in more than 150 countries. It operates through three divisions: Children's Book Publishing and Distribution; Education; and International. Scholastic owns the rights to properties such as Goosebumps and The Baby-Sitters Club and is the US distributor of the Harry Potter books, the best-selling children's series of all time. Known for its school book fairs, Scholastic also publishes magazines, textbooks, and software for students and teachers, and produces children's TV shows.
The company generates about 25% of sales outside of the US. Scholastic has long-established operations in Australia, Canada, New Zealand, and the UK, with newer holdings in China, India, and Ireland. Going forward, Scholastic expects to see strong growth in Asia and improved results in the UK.
Scholastic's revenues increased by about 5% in fiscal 2015 compared to the prior year, while the company's net income was up $250 million to nearly $295 million in fiscal 2015 compared to fiscal 2014. The company’s revenue and net income increased mainly due to increases in the book clubs and book fairs channels of the Children’s Book Publishing and Distribution segment combined with the higher revenues driven by changes in marketing strategies.
Scholastic expects growth to be driven by new technology. Television has been a particular area of focus for Scholastic. The company has a partnership with NBC and Telemundo (along with other content and broadcasting companies) to produce and distribute television for children through a venture called Qubo. Spots reinforcing the importance of books and reading play throughout the Qubo programming block, which airs on NBC and Telemundo in English and Spanish.
In 2015 Scholastic agreed to sell its Educational Technology and Services business to Houghton Mifflin Harcourt for $575 million in cash.