How is the Unemployment Rate in Sweden Impacting Adult Education?

The high unemployment rate in Sweden is positively impacting the adult education segment, driving up volumes and margins, though the company may not be able to sustain the current 12% margin long-term due to the need for quality investments as volumes increase.

What is the Status of Margin Improvement for Touhula, the Finnish Acquisition?

The company is about halfway through the margin improvement process for Touhula, the Finnish preschool operator it acquired, and expects to reach the full segment margin potential within approximately two years.

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Unemployment Surge Lifts Adult Education Demand in Sweden

Q: Where is the Swedish Education Provider Focusing its Expansion Plans?

The company is focused on expanding its presence in Germany and the Netherlands, and is also considering entering the UK and Polish markets, where it currently runs adult education programs and aims to establish schools.

30 Aug

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Summary

Unemployment rate in Sweden remains high, boosting adult education volumes and margins
Preschool and international segments need margin improvement, but overall targets are within reach
Expansion plans focus on Germany, Netherlands, and potential entry into UK and Poland

Unemployment Surge Lifts Adult Education Demand in Sweden

As of August 30th, 2025, Sweden's unemployment rate remains elevated, which is positively impacting the adult education segment of a leading education provider in the country. According to the company's CFO, Petter Sylvan, the high unemployment is driving increased demand and improved margins in the adult education business, though sustaining the current 12% margin may not be feasible long-term due to the need for quality investments as volumes rise.

The company is also making progress in improving margins in its preschool and international divisions, which have historically lagged behind other segments. The acquisition of Touhula, a Finnish preschool operator, has impacted the international division's margins, but the CFO expects the company to reach the segment's full margin potential within the next two years.

Looking ahead, the education provider is focused on expanding its presence in Germany and the Netherlands, and is also considering entering the UK and Polish markets, where it currently runs adult education programs and aims to establish schools. The CEO, Marcus Stromberg, stated that the company's strong cash flow and net debt position allow for a similar or larger share buyback or redemption program compared to the previous year, though the decision will depend on factors like market transparency and flexibility.

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