Education meets the digital economy

PLN 580m in revenue, a rapidly expanding digital business and the acquisition of Fluentbe. Polish education company Nowa Era intends to keep growing despite declining student numbers and changes in the education market. AI and the controversy surrounding electronic school registers are also shaping its future. CEO Andrzej Kozłowski discusses the company’s biggest growth opportunities and how schools are likely to change.

Anna Bełcik, Grzegorz Nawacki, XYZ: The new school year has recently begun. This is your second year as CEO of Nowa Era. Where does the company stand today?

Andrzej Kozłowski, CEO of Nowa Era: Like the entire sector, we are undergoing a transformation. Contrary to popular belief, the digital age does not mean the end of print. I believe the future of education lies somewhere in between – in a hybrid model.

Our research clearly confirms that reading a physical book encourages deep concentration and better retention, whereas digital devices, with their many distractions, make sustained focus more difficult.

Hybrid is a fashionable word. What does it actually mean in education?

Many countries have experimented with digital textbooks, but some, including Sweden and the United Kingdom, have returned to traditional books.

Our research clearly shows that reading physical books supports deep concentration and better retention, whereas digital devices, with their many distractions, make sustained attention more difficult. Teachers are particularly aware of this – especially the youngest ones, under 25, who grew up in the digital world themselves. Half of them expect textbooks to remain available in physical form in the future, while only one in eight believes education should become entirely digital.

At the same time, education is moving toward personalization.

The hybrid model combines the curriculum, printed textbooks and digital tools. It allows teaching to be tailored to individual students, whether they struggle with learning or achieve above-average results. Artificial intelligence is making this process even more effective.

Technology should support education, not define it

Is personalized learning already part of Poland’s education system?

Polish education resembles the healthcare system. If we want better service or faster access, we often turn to private healthcare providers. Education is free, but the public system does not always fully meet students’ needs. That is why parents pay for private tutoring or access to external learning platforms.

When it comes to infrastructure, however, Polish schools are not in bad shape. They receive substantial support through government and EU programs, including Digital Student, STEM Laboratories and, most recently, AI laboratories financed through Poland’s National Recovery and Resilience Plan.

Do you feel competitive pressure from edtech companies?

Edtech and big tech companies tend to approach education primarily through the digitization of processes, while educational publishers focus on teaching methods. That remains our competitive advantage. Publishers have a better understanding of what works for students and teachers, and which tools, including digital ones, they need.

At Finland-based Sanoma Group, of which Nowa Era is part, we are developing a wide range of digital tools. One example is Sanna, our AI-powered teaching assistant, which we have just made available to teachers across Europe. Importantly, it was developed in collaboration with more than 1,500 educators, including teachers from Poland.

We are expanding our technological capabilities both organically and through acquisitions. Our purchase of Polish company Fluentbe is one example.

Digital business is growing the fastest

Is the hybrid model already reflected in Nowa Era’s financial performance?

Today, Nowa Era Group consists of three companies: educational publisher Nowa Era, Vulcan and Fluentbe. Together, they offer a comprehensive portfolio of products for local governments, schools, teachers, therapists, parents and students.

Traditional textbooks and teaching materials remain the group’s largest revenue source, accounting for approximately 70% of the total. Digital solutions and technology platforms, however, are the fastest-growing part of our business.

What mattered most in the Fluentbe acquisition: its foreign-language teaching business or its technology?

Let me put it this way: we did not buy a platform – although I believe it is Poland’s best tutoring platform with an AI module. We bought the team, its technological ideas, and its ability to develop and commercialize them.

Nowa Era Group has a very strong position in K–12 education, covering the years from primary school through the end of secondary education. Fluentbe operates in lifelong learning, helping adults develop their skills, including employees of businesses.

From a strategic perspective, this was a carefully considered acquisition that opens up significant opportunities to expand our online offering. Fluentbe gives us the ability both to strengthen our core business and to build an additional business segment.

AI as support, not full automation

Does that include AI-driven digitization?

It is more about combining different tools. AI does not work equally well in every situation. Sometimes it can replace a person; in other cases, it can only complement their work.

Fluentbe is not a fully AI-driven platform. It still relies on human tutors – real language teachers. Some courses, however, have been automated with the help of an intelligent AI assistant.

Fluentbe offers solutions that Nowa Era needs in Poland, but not necessarily across the entire Sanoma Group. Is that correct?

We did not acquire a solution designed exclusively for the Polish market, although we believe it must first establish a strong position here. The domestic market is sufficiently large. Fluentbe has already attempted to scale internationally, but foreign operations have so far represented only a marginal share of its business.

We are not ruling out international expansion in the future. Sanoma approaches acquisitions with the development of the entire international group in mind.

Sanoma has an appetite for further acquisitions

Have you already identified other acquisition targets?

Sanoma has a substantial appetite for acquisitions. There are opportunities for expansion, including in Poland, although, as is often the case with M&A, not every negotiation leads to a deal. Fluentbe was not our only option, either. We also considered another company with a similar profile.

What kind of money is involved in acquisitions like these? Are we talking about several million, tens of millions or perhaps hundreds of millions of zlotys or euros?

Sanoma is a publicly listed company, so I cannot disclose specific amounts. But it is a large business group capable of executing substantial transactions.

The group intends to expand its K–12 education business through acquisitions in both existing and new geographic markets. In the near term, Sanoma has approximately EUR 300m available for M&A. We are continuously monitoring the market for potential transactions, and Poland is one of our key markets. Fluentbe will therefore not be our last move.

In the near term, Sanoma has around EUR 300m available for acquisitions. We are continually monitoring potential deals, and Poland is one of our most important markets.

Nowa Era expects growth despite demographic decline

Nowa Era generated approximately PLN 580m in revenue and PLN 85.9m in net profit in 2025. Given the shrinking print business and demographic trends, would increasing revenue over the next five years count as success, or would simply maintaining current levels be an achievement?

The textbook market is cyclical. Education reforms and changes to the national curriculum lead to textbook replacements, which boost revenue. Demographic trends and declining student numbers, on the other hand, work in the opposite direction.

Nevertheless, given our strategy, I believe Nowa Era Group has the potential to increase revenue steadily over the coming years.

A curriculum reform is now taking effect, first in primary schools and later in secondary schools. I assume curriculum changes are good news for a publisher.

A reform must first and foremost benefit Polish schools and students. The world is changing, and each new generation grows up in a different environment. Educational content needs to evolve accordingly.

Replacing textbooks is a natural consequence. But it also triggers intense competition. In a sense, everyone in the market is starting from scratch. We have to win customers and convince schools that our products are the best choice.

And how successful have you been in convincing them?

We are the market leader, and Nowa Era is the strongest educational brand in Poland. But that does not mean our position is guaranteed forever.

Let me ask directly: have you gained or lost ground this year?

It is still too early to say. The school sales season ends in October.

What are your expectations?

We have prepared a very strong offering, so I expect us to finish the year with revenue growth.

Less digital pressure on teachers

That is the business perspective. But as the head of an educational publishing company, what do you think of the curriculum reform itself?

Every reform is an experiment to some extent. Nevertheless, I view the direction of these changes positively, including as a parent.

Educational content is now more closely connected to everyday life. There is greater emphasis on the practical application of knowledge. Instead of counting apples in a basket, children might analyze a simple shopping receipt. There is more project-based learning, teamwork and experimentation.

What do you dislike about the Polish education system?

Teaching does not command enough prestige today. That is one of the main problems facing Polish schools, and it makes the profession less attractive to young people. The average teacher in Poland is around 50 years old.

What can be done about it?

I think teachers need more support, better tools and, of course, more attractive salaries. Teachers face considerable pressure from those around them, including parents, while expectations of them remain extremely high.

Vulcan has supported teachers’ right to disconnect and escape the “digital leash.” That position is reflected in a new feature added to the eduVULCAN platform. Why introduce it?

It is a small change with significant implications. Communication between schools and parents largely takes place through electronic school registers. Parents can message teachers at any time. The problem is that they often expect an immediate response – while a teacher is giving lessons, in the evening, over the weekend or on a public holiday.

We have therefore given teachers the ability to set the hours during which they receive notifications. If a message arrives outside working hours, they will only see it when they return to work. Everyone needs to disconnect from their professional responsibilities. And rest.

Why isn't ChatGPT enough for schools?

What will the AI-powered teaching assistant you mentioned actually do?

It is a platform that will help teachers prepare lesson plans and tailor assignments to students, taking account of their learning pace, abilities and difficulties. The system will make it easier to prepare quizzes and tests, automatically check submitted work, and help teachers produce feedback for students or parents.

Are we talking about a language model?

Yes, but not an off-the-shelf language model available on the market.

Why wouldn't a widely available tool like ChatGPT be enough?

That is a misconception. Our teaching assistant operates in a secure, internal environment built on verified knowledge. It uses content created by experts, aligned with the national curriculum and subjected to rigorous educational and subject-matter review.

Interestingly, younger teachers, although they regularly use tools such as ChatGPT, are often opposed to open AI solutions in education. As many as 93% of Polish teachers identify publishers as key guarantors of the quality of such content.

Only a closed data environment can provide assurance that an AI assistant will not invent historical facts or the laws of physics, and will serve as a reliable partner for teachers.

The assistant is intended to support teachers, not replace them. It does not make decisions, grade students or substitute for teachers' professional judgment. Teachers remain responsible for verifying, adapting and using all generated content. Human oversight is maintained at every stage.

Digital content, yes. Unrestricted smartphone use, no.

If there is a shortage of teachers, perhaps schools should turn to virtual teachers, or have one teacher deliver remote lessons to several schools simultaneously?

A few months ago, a meeting with Melania Trump took place at the White House, where a robot that could potentially be introduced into American schools was presented. The idea drew considerable criticism from academics and teachers.

In a sense, we already experienced virtual teachers during the pandemic and remote learning. That experience had a negative impact on children's development.

There is a great deal of discussion about students struggling with concentration and reading comprehension. Is this a generational change or a direct consequence of social media platforms such as TikTok?

Such platforms rely on short, intense and emotionally charged messages. They create constant stimulation, cause concentration problems and can be addictive for children.

The difficulty is that we live in a different, more complex world than we did a few decades ago. Digital tools are now unavoidable.

We are responding to these changes. Our SMARTbook for secondary schools combines print with digital content. We realized that we could not change the habits of students who enjoy video. So we introduced QR codes linking to our own safe, high-quality materials hosted on platforms such as YouTube.

It is easier to show students a video of a volcanic eruption than to ask them to imagine one from a long, complicated description.

Do you support smartphone-free schools? Doesn't that contradict your strategy of developing digital education?

Absolutely, I support them. When children went out for recess, they were no longer chasing one another, throwing their gym bags around or playing soccer, as we used to. Most simply took out their phones. There was no interaction or conversation between them, and no opportunity for their brains to rest. A ban in primary schools was necessary.

But that does not mean rejecting technology or digital content. Schools still use plenty of digital tools, but in a controlled and safe environment.

Of course, the situation is different in secondary schools. Older students may have a printed textbook open on their desks or use a digital version on a tablet. They take digital notes and study from them.

State-run electronic school registers versus commercial platforms

As we speak, the prospect of a presidential veto of the government's plan to introduce a state-run electronic school register is hanging over the debate.

I expected that question.

The Education Ministry's proposal directly affects Vulcan and its electronic school register business. Were you relieved?

What stood out most to me in the justification for the veto was the voice of teachers. They feared chaos and inadequate preparation for introducing a new system. The second argument concerned the cost of the project, which had also raised concerns at the Ministry of Finance.

The objective was to introduce a free solution. But existing electronic school registers are already free in their basic versions, which are sufficient for most users.

From a business perspective, charging for additional features is entirely natural, since developing and maintaining them costs money. There are employees behind these services, infrastructure expenses, data security requirements and commissions charged by Google and Apple.

As for integration with mObywatel, Poland's government digital identity app, I use it myself and believe digital copies of school certificates, diplomas and similar documents would be useful in many situations. But I do not see it as the right place for grades, timetables, access to educational materials and lesson-planning tools, or communication between students, parents and schools.

Allegations against Vulcan: student data and security

Supporters of a state-run electronic school register point out that Vulcan generates more than PLN 180m in revenue. Would a government system destroy your business?

That is another misleading argument in this debate. The electronic school register accounts for only part of Vulcan's revenue.

The company offers a digital ecosystem for school administration, including payroll, human resources, finance, libraries and cafeterias. That is where most of its revenue comes from.

Vulcan was founded in 1988. It built and digitized an entire school administration system, something the state was unable to accomplish on its own.

We created the mobile app not because we were required to, but because we wanted to make life easier for parents and students. We charge parents approximately PLN 30 for the version of the electronic register with additional features when purchased through our website, or around PLN 40 through Google and Apple's app stores, where commissions are higher.

This is not a monthly subscription like Netflix. It is a fee covering the entire school year. So it is easy to see that these are not the sums that sustain a large company.

A state-run electronic register would not have been fully implemented overnight. Schools would also have been given a choice between the government system and one of the private alternatives.

That is why I was not concerned about healthy market competition. Many schools would have stayed with our solution because they know the value of our systems and of an app that brings their educational needs together in one place.

There have been allegations on social media that you monetize information about students.

I want to put an end to that speculation. We do not engage in behavioral profiling of children, and we do not monetize student data.

There is no advertising in our app. If any commercial messages appear, they relate exclusively to our own educational products.

I want to make this absolutely clear: we do not engage in behavioral profiling of children, and we do not monetize student data.

Concerns have also been raised about student data security. Where do you store the data?

We operate within a European technology ecosystem and use appropriately protected data centers. Security is crucial to us, particularly because Vulcan processes a substantial share of teachers' payroll data in Poland.

We invest heavily in cybersecurity. Incidentally, government systems are just as vulnerable to cyberattacks as any others.

Which has the larger market share: Vulcan or Librus?

There are several other providers besides Librus and Vulcan, but those two are the largest. I would say Vulcan currently has a slightly wider reach.

Education teaches managers humility

Your career has brought you into a sector where a single ministerial decision can turn a business upside down.

Similar risks existed when I worked at Orlen or managed Emitel. Energy, telecommunications and education may seem like completely different worlds at first glance. But from a management and strategic perspective, they have something in common: I have always managed infrastructure that is critical to the country.

At Orlen, it was energy and raw materials infrastructure. At Emitel, telecommunications infrastructure. Now I manage the infrastructure that matters most to the country's future: its human capital, which will shape the labor market for years to come.

I must admit, however, that education came as something of a culture shock.

What do you mean?

In education, a company must navigate the interests of many different stakeholders. The regulator, the payer, the system administrator, the user and the beneficiary all inhabit different worlds. Each has different expectations, and all must be accommodated within a single product.

Students want simplicity. Parents want peace of mind and results. Teachers want technology that does not consume what little free time they have left. The government demands compliance with regulations and the national curriculum. School principals think in terms of the resources available to them. Local governments, meanwhile, face their own financial constraints.

A few months ago, while visiting the United States, I heard someone describe the education market as a vast graveyard of brilliant Silicon Valley startups that failed because they ignored student psychology and teachers' needs.

I have come to think much the same way. Education is one of the most difficult fields in which to innovate.

A few months ago, while visiting the US, I heard that the education market was a vast graveyard of brilliant Silicon Valley startups that failed because they ignored student psychology and teachers' needs.

How has that affected you as a manager?

It has been a lesson in humility. You arrive with almost 30 years of management experience and start talking about optimization, processes and data analytics. Then you hit a wall because this sector operates differently.

The bottleneck is leadership, not algorithms

Was it difficult to understand the new management dynamics?

In management, I use a practice called Gemba Walk, rooted in the Kaizen philosophy and the principles of Lean Management. It encourages managers to put themselves in the shoes of people working at different levels of an organization.

At Orlen, for example, I spent several days working at a gas station. At Emitel, when I wanted to understand infrastructure maintenance, I joined a technical team and climbed to the top of a radio and television transmission mast near Kraków that was more than 280 meters tall.

At Nowa Era, I spent a day with our editorial team in Gdańsk, observing the research process and the creation of educational content and illustrations.

This approach helps you understand a business more quickly and build closer relationships with your team.

Did you decide that you wanted to work in education and start looking for a company, or did the company find you?

The company found me.

Nevertheless, I was interested in the intersection of education, business and technology, including artificial intelligence. I have been fascinated by AI for years. At Emitel, its impact was less significant because the business was primarily infrastructure-based.

You have been at Nowa Era for two years. What has given you the greatest sense of satisfaction so far?

I was succeeding a CEO who had successfully led Nowa Era for many years. Building credibility with the team while finding my feet in an unfamiliar industry is something I consider a significant achievement.

The same applies to establishing a strategy for growth through acquisitions, with Fluentbe being a good example.

Sanoma gives me a unique opportunity to work within an international organization at the heart of the digital revolution – transforming working practices, deploying AI and changing the habits of millions of people who use our solutions.

I believe the company needed an outside perspective, and I brought experience and capabilities that are valuable in dealing with today's market challenges.

Today, the bottleneck is not access to algorithms or AI tools. It is leadership, management quality and the ability to transform corporate culture.

Key Takeaways

1. Education is moving toward a hybrid model, not complete digitization. Nowa Era's CEO believes printed textbooks still have an important role to play, particularly in supporting concentration and memory. At the same time, schools cannot ignore students' digital habits. He sees the future in combining traditional learning materials with safe digital tools and AI.
2. Nowa Era wants to grow through technology and acquisitions, not just its traditional publishing business. Textbooks still account for around 70% of group revenue, but digital solutions are its fastest-growing segment. The acquisition of Fluentbe is intended to strengthen its online offering and expand into lifelong learning. Parent company Sanoma has funding available for further acquisitions and considers Poland one of its most important markets.
3. Technology should support teachers rather than replace them. The group's AI teaching assistant is designed to help prepare lessons, personalize assignments, check students' work and generate feedback, while operating within a closed environment based on verified educational content. Andrzej Kozłowski stresses that teachers remain responsible for evaluating and using AI-generated materials. In his view, the biggest challenge in digital transformation is no longer access to AI itself, but management quality and an organization's ability to change.