Lumi Gruppen Q1 2022 results

Oslo Nye Høyskole well positioned, Sonans adapted to online shift

o	Revenue at NOK 133 million for the first quarter (-0.5%)
o	Sonans with growth in online revenue while campus revenue is behind last year 

o	Price adjustments implemented for Sonans to align price levels across student
o	Strong performance for Oslo Nye Høyskole (ONH) with revenues up 17 per cent in
Q1`22 vs. last year
o	EBIT at NOK 21 million for the first quarter (-30.0%)
o	Cost programme implemented, but lower average price per student affects
o	Full-year effect of ramp-up of costs related to new programmes at Oslo Nye
o	Cost measures totalling NOK 10-12 million implemented to reflect online shift
o	Closing 3 campuses in July 2022, will reduce annual operating costs by
additional NOK 14 mill. 
o	Sonans
o	New digital campus structure well received by students, full launch autumn
o	Efficiency measures progressing as planned 
o	Oslo Nye Høyskole (Bjørknes Høyskole)
o	Well positioned and strong start to autumn student intake  
o	Focus on expanding student offerings and increasing number of students further

Important milestones reached in digitalization of student offerings

Focus during the first quarter of 2022 has been to execute on the company's
strategy. For Sonans, significant steps have been taken to align operations with
the shift in market trends and Oslo Nye Høyskole (ONH) continued to improve its
market position and gain market share.
As a response to the continued migration from campus courses to online courses,
Sonans has introduced a new digital campus structure named Live. Live will
utilise existing teaching capacity at the physical campus and the courses will
be structured in line with existing campus courses. Facilitating interactions
between teachers and fellow students will be crucial for structuring the new
student offering.

During the first quarter Sonans has launched a pilot version of Live with a very
promising outcome. In a recent survey, students attending Live rated the new
student offering 4.7 out of 5, while campus courses were rated 4.5 and existing
online offerings were rated 4.4. Consequently, Live will be fully launched
effective from August 2022 with a special and newly designed marketing campaign
commencing in May 2022. 

Oslo Nye Høyskole (ONH) continued the strong performance in the first quarter
2022 with a record high number of students attending courses. The growth was
primarily driven by a solid 55 percent increase in the number of bachelor
students. By continuing to increase multi-year bachelor programmes' share of
revenue, revenue visibility will increase in the business model and reduce
operational risk.

ONH's solid performance is a good illustration that the expansion of study
programmes has been successful and well adapted to students' focus and needs.
ONH launched 5 new programmes in the autumn 2021 and will continue to focus on
growing the business. The key priority will be to increase the number of
students in the new programmes, but new single subject programmes will also be
launched. These programmes will be derived from multi-year bachelor programmes.
In addition, an additional bachelor programme will be launched in 2023.

Financial results

Revenues declined by 0.5% per cent to NOK 132.7 million in Q1 2022, compared to
NOK 133.3 million in Q1 2021. Revenue was positively impacted by a significant
increase in the number of students at Oslo Nye Høyskole with NOK 6.6 million in
higher sales for the quarter, corresponding to 17.2 per cent growth. 
For Sonans, online sales have been strong with NOK 29.1 million for the quarter
and the online revenue share increased from 26.5% in 2H of 2021 to 33.2% in Q1
2022. The increase is in part driven by the new commercial terms for online from
1 January 2022. For campus, volumes continued to decline and ended at NOK 58.6
million compared to NOK 63.6 million in Q4 2021 and NOK 75.3 million in Q1 2021.
As commented in previous interim financial reports, lower sales for campus have
not been balanced out by the stronger online sales due to the difference in
price for the offerings.  

Adjusted total operating expenses increased by 8.1 per cent to NOK 98.3 million
in Q1 2022, compared to NOK 90.9 million in Q1 2021. The increase is mainly
driven by the investments made in Oslo Nye Høyskole for the new programmes. The
investments are mainly additional employees required for the launch of the new
programmes and most of them started in the second half of 2021. Therefore, the
increase does not represent additional costs this year, but the full year

For Sonans, cost measures were implemented with effect from January 2022 to
compensate for lower campus volumes and the online shift. The measures are
expected to contribute with NOK 10-12 million this financial year. In Q1 2022,
Sonans reports savings of NOK 3.5 million mainly related to personnel costs. In
addition to the cost measures, it was decided earlier this year to close three
campuses from the second half of 2022, which will add another NOK 14 million to
annual cost savings.

Adjusted EBIT ended at NOK 20.8 million, a decrease of 30 per cent compared to
the same period last year.

Strong market for private education

The demand for higher education in Norway is still high even if the total number
of applicants for higher education to NUCAS ("Samordna Opptak") fell by 12 per
cent from 2021 to approximately 135 000 applicants in 2022. Available admission
places remained stable from last year at approximately 62 000, which means that
there are still more than twice as many applicants than available places.
Even if the overall number of applicants to higher education in Norway fell, ONH
has managed to increase the number of student applicants by 8 percent in total
and 21% for bachelor programmes as of 20 April and continued to gain market
share. The positive development for Oslo Nye Høyskole is expected to continue
with the total number of students reaching a new all-time high this autumn.

Although early in the intake cycle for the autumn, Sonans is experiencing
slightly weaker student intake compared to last year. Net sales per week 17 are
down 18 per cent compared to same period last year. However, Sonans will start
marketing Live, the new digital campus, in May and extensive marketing campaigns
will be executed throughout the summer. The most important campaign period is
from 20 July to the end of August. 

The overall long-term financial ambitions for the Group remain unchanged. In the
Q4 2021 report and presentation, Lumi Gruppen stated that the EBIT margin for
2022 is expected to be on par with 2021 with improved profitability
materialising in the second half of 2022. The preconditions for such an
expectation are continued solid sales for ONH and improved market conditions for
Sonans with slightly higher volumes compared to same period last year. Cost
savings measures are implemented together with price adjustments, but volume
growth is however still necessary to achieve an improvement in the profitability
for the Group this financial year.       

Lumi Gruppen is the market leading provider of private education in Norway.
Through a combination of high student satisfaction and a unique learning
concept, the Group has established a competitive edge and the board is confident
that the Group is well positioned to exploit market opportunities going forward.

First quarter report and presentation material

Please see attached the first quarter report and Q1 Presentation for further
information. The quarterly report, presentation materials with key figures will
also be available on the company's website at
Reports and Presentations
Presentation and webcast CEO Erik Brandt and CFO Martin Prytz will present the company's results on Tuesday May 10 at 09:00. The presentation will be held without physical participants on Teams and the presentation will be held in English and transferred via live webcast. Please follow this link to attend: WFmNWQtODQwMTRmMjNiYzAz%40thread.v2/0?context=%7b%22Tid%22%3a%22853e8b83-4054-4e b9-8b26-ec6513dd213d%22%2c%22Oid%22%3a%22ba1f21a1-74d5-4d4a-8b8f-2f06d0c71a75%22 %2c%22IsBroadcastMeeting%22%3atrue%7d&btype=a&role=a The link to the webcast will be available on the company's website:
Reports and Presentations
It will be possible to ask questions via the web. Contact information Martin Prytz, CFO and Head of Investor Relations E-mail: Mobile: +47 480 14 078 About Lumi: Lumi Gruppen is a leading Norwegian education provider founded in 1989. Today, Lumi Gruppen consists of two main divisions: Sonans and Oslo Nye Høyskole. Sonans is the market leader in Norway within private candidate exam preparation courses, and Oslo Nye Høyskole offers high quality bachelor's degrees within health, social sciences, psychology and business and administration, both on campus and online. This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

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