Lumi Gruppen: Q4 2021 results (2022)

In line with expectations, stable demand and continued online migration

•Revenue at NOK 134 mill. for the fourth quarter (-2%)
oShift to online studies for Sonans
oContinued growth from new programmes for Oslo Nye Høyskole (ONH)
•EBIT at NOK 24 mill. for the fourth quarter (-23%)
oFixed campus cost structure short term for Sonans
oRamp-up of costs related to new programmes at Oslo Nye Høyskole
•Cost measures totalling NOK 10-12 million implemented to reflect online shift
oOperational efficiency
oRightsizing organisation
oRevenue affected by online migration in autumn student intake
oNew digital campus offering under implementation in response to online shift
oMarit Aamold Trysnes appointed new Managing Director
•Oslo Nye Høyskole
oWell-positioned with solid spring student intake
oPositive outlook with full marketing launch in coming autumn intake
•Norwegian School of Technology
oRamp-up plan established, awaiting final approval
•Proposed dividend of NOK 1 per share equal to 60% of (Net) Profit

CEO Erik Brandt in Lumi Gruppen comments:

“The demand for our student offerings remains strong and the need for higher
education is increasing. In such a positive environment, important measures have
been taken to align our student programmes to the rapid online migration that
has taken place.

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In Sonans, we are about to launch a new innovative and unique digital campus
structure that will expand market reach and significantly add value to the
current online value proposition. Through this initiative, our online offerings
will be on par with our campus offerings and, at the same time, increase
operational flexibility and scalability.

Oslo Nye Høyskole is well positioned with significant growth opportunities. We
will expand the student offerings by introducing new courses, and we will also
increase the number of students in the coming autumn intake.
I am also enthusiastic about our plans for Norwegian School of Technology. The
market for IT studies continues to strengthen. All ramp-up plans are completed,
and we are aiming to launch the school this autumn.”

Online migration continues
During the fourth quarter important measures have been taken to further improve
the competitive position and align the student offerings to the shift in market
For Sonans, the migration from campus courses to online courses continued in the
spring intake. The number of new students that signed up for Sonans’ online
studies increased by 4.1 per cent, while the number of campus students was down
23.8 per cent. The company believes that the significant shift towards online is
in part an effect of the Covid-19 pandemic.
As a response to the shift in market trends, Sonans will introduce a new and
unique learning concept by establishing a digital campus offering. The digital
campus will utilise technology to drive student experience and provide students
with digital assistance and live online classes. The digital campus 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.
The digital campus will also significantly enhance the online offerings for
Sonans from the current online structure and increase the value per student as
prices for campus and digital campus are aligned from the beginning.
The spring student intake for Oslo Nye Høyskole reached an all-time high with an
increase of 16 per cent, whilst the number of new bachelor students increased by
55 per cent. The solid performance is driven by a strong increase in the number
of students, especially those attending bachelor programmes and annual
programmes. The sale is in line with expectations, and it is encouraging to see
that bachelor and annual programmes continue to grow, since they are the
programmes with highest value per student.
Lumi Gruppen is also in the process of launching a new practical IT vocational
school, NTech (Norwegian School of Technology). During the fourth quarter of
2021, the Norwegian Agency for Quality Assurance in Education (NOKUT) required
further information before it grants final accreditation for the launch of
Financial results
Revenues declined by 2 per cent to NOK 133.7 million in Q4 2021, compared to NOK
136.0 million in Q4 2020. Revenue was positively impacted by a significant
increase in the number of students at Oslo Nye Høyskole with NOK 5.6 million in
higher sales for the quarter, corresponding to a 14.5 per cent growth.
For Sonans, migration to online continued in Q4 2021 and resulted in a net
decline in revenue of 7.8 million corresponding to minus 8.3 per cent. Online
sales have been strong in the quarter, but due to lower pricing for online
courses, lost campus sales have not been balanced out.
Adjusted total operating expenses (excluding depreciations) increased by 4.3 per
cent to NOK 96.3 million in Q4 2021, compared to NOK 92.3 million in Q4 2020.
The increase is mainly driven by the investments made in Oslo Nye Høyskole to
prepare for expected student growth. There were limited additional Covid-19
costs in Q4 for Sonans, but higher expenses compared to last year because of the
new campuses that opened in Q3 2021.
Adjusted EBIT ended at NOK 24.0 million, a decrease of 23 per cent compared to
the same period last year. Profit before tax was NOK 10.3 million in Q4 2021
compared to NOK 8.4 million in Q4 2020.

For 2021, a dividend of NOK 1 per share will be proposed. This is equal to 60%
of (Net) Profit for 2021.
As at the balance sheet date, the Group had cash and cash equivalents of NOK
63.4 million, compared to NOK 17.8 million at the same date in 2020.

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The demand for higher education is increasing in Norway, and Lumi Gruppen is the
market leading provider of private education. Through a combination of high
student satisfaction and a unique learning concept, the Company has established
a competitive edge and is well positioned to exploit market opportunities going
The overall long-term financial ambitions for the Group remain unchanged.
However, the Covid-19 pandemic has led to a faster than expected shift in
student mix from campus to online which will affect performance at Sonans in the
shorter term as prices for private candidate courses are significantly lower for
online than for campus courses.
Consequently, Sonans is in the process of adjusting prices for the online
courses. In addition, several efficiency measures have been implemented that
will reduce the cost base by roughly NOK 10-12 million. Sonans is also in the
process of launching a new unique digital campus offering that will increase the
value of the online student offerings and align online prices with campus

Oslo Nye Høyskole will continue to focus on growing the business and reaching
economies of scale. 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 is planned for launch in 2023. By
continuing to increase bachelor programmes’ share of revenue, revenue visibility
will increase in the business model and reduce operational risk.

Because of the current market conditions with students migrating to online
studies, Lumi Gruppen expects the EBIT margin for 2022 to be on par with 2021
with improved profitability materialising in the second half of 2022.

Fourth quarter report and presentation material
Please see attached the fourth quarter report and Q4 Presentation for further
information. The quarterly report, presentation materials with key figures will
also be available on the company's website at

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Presentation and webcast
CEO Erik Brandt and CFO Martin Prytz will present the company's results on
Thursday February 17 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:

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The link to the webcast will be available on the company’s website:

It will be possible to ask questions via the web.

Contact information
Martin Prytz,
CFO and Head of Investor Relations
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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