Learning Technologies Group (LTG) has revised its revenue forecasts due to economic factors.
- High inflation and AI adoption have led to a 12% revenue decline for LTG.
- LTG’s full-year revenue guidance is adjusted to £473m – £493m.
- CEO Jonathan Satchell highlights challenges posed by market softness, yet remains optimistic.
- LTG is driving efficiencies and portfolio simplification as part of its strategic response.
Learning Technologies Group, a London-based edtech company, has recently revised its revenue forecasts, attributing this decision to the impact of high inflation and the widespread adoption of artificial intelligence. The company’s revenue for the first half of the year fell by 12%, reaching £250 million.
In response to these economic pressures, LTG has adjusted its full-year revenue guidance. The original forecast of £480 million to £500 million has been revised down to a range between £473 million and £493 million, with expectations of reaching the lower end of this spectrum. This adjustment is partly due to exchange rate fluctuations.
CEO Jonathan Satchell addressed the challenges the industry faces, citing market softness, limited budget allocations, and the transformative effects of AI on traditional business methodologies. Despite the disappointing revenue figures, he emphasized the enduring structural drivers within the learning and talent development sector, expressing confidence in LTG’s potential for growth as market conditions improve.
Further illustrating its strategic response, LTG reported a significant increase in pre-tax profits, which more than doubled to £34 million during the period. The company maintained its interim dividend of 0.45p and is pursuing efficiency improvements to bolster financial performance.
In alignment with its strategic goals, LTG recently completed the sale of its vendor management platform, Vector, to the French company PIXID for $50 million in cash. Additionally, LTG is in the process of developing a new subsidiary dedicated to federal US Government contracts, expected to become operational in the first half of the next year.
LTG is navigating economic challenges while focusing on strategic adjustments to strengthen its market position.
