Q2 in line with expectations, growth in autumn intake driven by online

oQ2'21 revenues up 7% to NOKm 134.1
o Number of students up 13.2% 
o Shift in revenue mix towards online
oAdj. EBIT down 11% in Q2'21 to NOKm 47.6, as expected
o Increased headcount at Bjørknes to support student growth
o Shift towards online and Covid-19 related costs at Sonans Utdanning
oSolid growth in students in ongoing autumn intake
o Sonans Utdanning and Bjørknes Høyskole with a market leading position
o Online major growth driver, accelerated by Covid-19 
oChange in student mix to online for Sonans Utdanning will affect short term
profitability
oAll growth initiatives on time and according to plan

Second quarter 2021 has been an eventful quarter for Sonans Holding where the
Company's position as the marked leading provider of private education in Norway
has been cemented. The market fundamentals are strong and significant
organisational investments have been made to secure a best possible study
environment. 

"I am very excited by all the positive feedback we have received from the
students during the second quarter, with a record number of students enrolled
for the 2021/22 school year. The market fundamentals for higher education are
strong and we have strengthened our market position during the quarter.

At Bjørknes we see solid growth in multi-year bachelor and master programmes,
which will secure stable growth in the coming years. With 5 new student
programmes being launched this autumn and increased activity, we have ramped up
the organisation during the quarter as planned, which has led to increased
costs.
 
At Sonans Utdanning, there has been a tremendous growth in online studies and a
decline in campus students, which will impact short-term profitability as online
courses are priced lower. In response, we will adjust our costs. Longer-term,
the shift towards online represents an opportunity as online studies are more
scalable." 

- Erik Brandt, CEO


Financial results
Total revenues increased by 7 per cent to NOK 134.1 million in Q2 2021, compared
to NOK 125.8 million in Q2 2020. Revenue was positively impacted by a
significant increase in the number of students at Bjørknes Høyskole. Due to
stricter infection control measures imposed in January, schools were temporarily
closed in the Greater Oslo Area and led to a shift to online studies, which
affected revenue at Sonans Utdanning negatively.

Total operating expenses increased by 23 per cent to NOK 73.9 million in Q2
2021, compared to NOK 60.0 million in Q2 2020. The increase is driven by
significant investment in Bjørknes to prepare for expected student growth, as
well as some Covid-19 effects, especially at Sonans Utdanning. Personnel cost is
the largest category, totalling NOK 48.7 million in Q2 2021. Total personnel
costs for Sonans Holding increased by 20.1 per cent from the same period last
year. The increase was mainly driven by additional staff at Bjørknes Education
in connection with the launch of 5 new student programs this autumn.

Adjusted EBIT ended at NOK 47.6 million, a decrease of 11.2 per cent compared to
the same period last year.

Strong market for private education
The demand for higher education is increasing in Norway, and Sonans Holding is
well positioned as 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 forward.
  
The number of students that signed up for Sonans Utdanning's courses in the
autumn semester of 2021 showed 3 per cent growth as of week 33 compared to last
year. The growth in the autumn semester of 3 per cent was driven by online
students being up 55 per cent, while campus students are down 11 per cent.
Strategically, Sonans is assessing the impact of the accelerated shift from
campus to online. Short-term, Sonans Utdanning has a fixed cost base linked to
the campus structure, while prices for private candidate courses are
significantly lower for online than campus courses. As a consequence, Sonans
Utdanning is currently in the process of reviewing its pricing policy and
operating model.

For Bjørknes Høyskole the situation is different, as prices for online studies
are equal to campus courses. Bjørknes Høyskole experienced growth in the number
of new students and the autumn student intake is at an all-time high. For the
autumn semester of 2021, the school experienced a growth of 19 per cent in the
number of signed contracts compared to last year as of week 33. The growth in
student intake for the multi-year programmes was especially high, with 234 more
bachelor students compared to last year and 25 additional master students.
As a consequence, financial expectations have been revised down somewhat for
Sonans Utdanning and growth expectations revised up for Bjørknes Høyskole.

For Sonans Utdanning revenues are now expected to be slightly down in 2021
compared to a previous expectation of 5 per cent revenue growth. Longer term,
Sonans Utdanning is targeting a revenue growth of approximately 5 per cent
(5-10%).

For Bjørknes Høyskole, revenues are expected to above 25 per cent in 2021 (25%).
Longer term, revenues are now expected to be 25 per cent vs a previous revenue
target in the range of 20-25 per cent.

All other financial targets for Sonans Holding remain unchanged. They include a
long-term target of an adjusted EBIT margin above 30 per cent for both segments.


Growth initiatives on track
Bjørknes Høyskole has received accreditation from the Norwegian Agency for
Quality Assurance in Education (NOKUT) for four new bachelor programmes which
will commence in August this year. Bjørknes Høyskole will also expand its
student offerings through the introduction of a new Master programme. Bjørknes
Høyskole's subject focus is on social sciences, psychology, healthcare
(medicine, physiotherapy, and nutrition), and business and administration from
2021.

Through the ramp up of the new programmes, the total number of degrees at
Bjørknes Høyskole will double from 5 to 10 and ensure a solid platform for
growth and create a transparent stream of revenue growth in the years to come. 
During the first half of 2021, solid progress has also been made in the
establishment of a new school, NTech (Norwegian School of Technology), which is
a practical IT vocational school. There is a large demand for high-quality
practical programming expertise and the Group will offer vocational IT education
and courses, both for the private and professional market.
 
NTech has started to hire employees, secured premises and is in dialogue for
collaboration with key industry participants. Sonans Holding will target a
launch of the new school in 2022, most likely from the autumn semester.


Second quarter report and presentation material
Please see attached the second quarter report. The quarterly report,
presentation materials with key figures will also be available on the company's
website at https://sonansgruppen.no/for-investors/ 


Presentation and webcast
CEO Erik Brandt and CFO Henrik Knudtzon will present the company's results at
09:00 via Teams. Due to the Covid-19 situation, the presentation will be held
without physical participants. The presentation will be held in English and
transferred via live webcast. 

The link to the webcast will be available on the company's website:
https://sonansgruppen.no/for-investors/ 

It will be possible to ask questions via the web.

Contact information
Henrik Knudtzon
CFO and Head of Investor Relations
E-mail: IR@sonans.no
Mobile: +47 930 22 827


About Sonans Holding
Sonans Holding is a leading Norwegian education provider founded in 1989. Today,
Sonans Holding consists of two main divisions