Swedish ebook and audio streaming platform Storytel reported results for the first quarter of 2020, with net sales of SEK 513.2 million ($52.7 million), up 33.5 percent from SEK 385 million. (Announced this quarter, total sales accounting will now include the capitalization of developing its digital catalog, which was formerly reported as an expense and totaled SEK 46.8 million, not reflected above.) The EBITDA loss of SEK (31.1 million) was an improvement from SEK (67.9 million). To continue fueling its growth, the company completed a directed share issue February 20 that raised SEK 948 million before fees “and provided the […]
McGraw-Hill Shifts Fiscal Year
On the heels of its cancelled merger with Cengage, McGraw-Hill today issued a limited “preliminary Q4 and full-year report”– or otherwise put, announced that it is delaying full financial reporting for the quarter until mid-June, and changing their fiscal year. The company already reported a fourth quarter, ending December 31, back in early March — but the new report reflects a shift to a fiscal year ending March 31, which they say will better align with seasonal industry cycles. The preliminary report, which lacks full financials, touts their digital growth and provides minor updates on how COVID-19 has affected the […]
Corporate: Quad Sales Drop 14.4 Percent in the First Quarter; Lagardere Shareholders Reject Dissident Board Nominees
Quad reported earnings for the first quarter ended March 31, 2020, with net sales from continuing operations — which excludes the book printing business that has been up for sale for over six months — of $822.5 million, down from $961 million last year, or 14.4 percent. The declines largely reflect “ongoing print industry volume and pricing pressures, including the initial impact from COVID-19 pandemic.” Adjusted EBITDA for the quarter was $75.4 million, down from $78.4 million. The book printing business showed a net loss of $(8.6) million for the quarter, compared to a loss of $(12.7) million a year […]
McGraw-Hill and Cengage Terminate Merger
McGraw-Hill and Cengage announced May 4 that they have mutually agreed to terminate their planned merger. McGraw-Hill said “the required divestitures would have made the merger uneconomical,” while Cengage cited “a prolonged regulatory review process and the inability to agree to a divestitures package with the US Department of Justice.” Under the terms of the merger agreement, which the companies have repeatedly called a “merger of equals,” neither company will pay a termination fee. Both the DOJ and the UK’s Competition Markets Authority said the companies would have to divest certain courses where they were the chief competitors before approval. […]
Lagardere Publishing Documents Good Start Followed By Sharp Falloff
Lagardere Publishing reported results for the first quarter 2020, giving some data to the year’s good beginning and sharp turndown in March. Sales were up 5.6 percent in January and February before the global lockdowns began, followed by a 19 percent decline in March. And the company expects April sales were “down in the region of 45 percent” (which is at least better than the expected 90 percent decline in the Lagardere Travel business). For the first quarter, sales of €457 million were only down €3 million, helped again by the strong US dollar and improving British pound, which added […]
Bertelsmann Reports Moderate First Quarter Sales Decline
In a brief trading update, Penguin Random House parent company Bertelsmann reported “satisfactory” results for the first quarter of 2020, saying sales “declined moderately by 2.7 percent to €4.1 billion.” Ceo Thomas Rabe said: “The 2020 business year, with the economic fallout from the coronavirus pandemic, will be a challenge. We started the year well, but have been feeling an increasing impact on our businesses since March. We took a number of measures early on to protect the health of our employees and safeguard our businesses,” including selling a €750 million Eurobond with an eight-year term, among the measures to […]