Today is Bertelsmann’s turn for a brief, European-style third quarter trading update, with no breakouts by division. If you strip out the recent quarter by itself, sales of 3.575 billion euros were up 3%, and operating EBIT of 355 million euros was up 36 million euros, or 11 percent. For the year-so-far, sales are up slightly, and operating EBIT is down a little, with both of those categories performing better in the third quarter than earlier in the year. Release In the UK, WH Smith said in a brief update of their own that High Store sales declined 5 percent […]
Booksellers
Accounting House of Horrors? What Agency Does to Amazon’s Reports
Ever since the agency model first appeared in early 2010 we’ve been writing about some of the unanticipated effects of that shift, and today we turn our attention to another previously overlooked ramification: what agency does to retailer accounting. In public Amazon opposed the agency model on behalf of protecting their power to price ebooks and offer discounts to their customers. But agency has an important accounting impact as well. For regular/wholesale ebook sales, Amazon books the full value of what the consumer pays. But for agency ebooks, under standard accounting rules the company only books the commission they receive […]
Big Orders for Amazon Devices Weigh On Profit Guidance, and Stock Price
Amazon reported third quarter sales of $10.88 billion after the close of the market on Tuesday, yielding net income of just $63 million (or 14 cents a share), and the reaction from investors was negative. The stock had already declined more than $10 a share (or 4.4 percent) in regular trading Tuesday ahead of the earnings announcement, and it fell sharply in after-hours trading and again this morning. At press time time this morning, shares were down about $27, or 12 percent, trading at just above $200 a share. While sales were towards the high end of the company’s own […]
WHSmith Team Up With Kobo As They Report Full Year Sales Decline on Rising Profits
As Kobo continues to expand its reach around the world, they have now found a UK retailer to sell its ereader and ebook offerings: WHSmith announced Wednesday they have teamed up with Kobo as the “perfect partner” for ebooks. They will sell the Wi-Fi ereader for £89.99 (and the Kobo Touch for £109.99) and offer the more than 2.2 million ebooks for sale from Kobo’s catalog. Previously WHSmith’s ebookstore was powered by Overdrive. WHSmith also reported their annual earnings for the year ending August 31 Wednesday, with overall sales down 3 percent to £1.273b on a 5 percent rise in […]
Corporate Briefs: BN, BAMM, and Pearson
In their quarterly SEC filing, Barnes & Noble addressed the would-be class action suit filed in New York last month that includes the bookseller and Amazon along with Apple and the six largest trade publishers, alleging price fixing and conspiracy with respect to the agency model for ebooks. “The company denies liability and intends to vigorously defend its interests.” Books-a-Million filed their quarterly report as well, which confirms the continuing merchandise shift underway at physical stores. Books and magazines now comprise 75.6 percent of sales, down from over 80 percent a year ago. The largest growth area, no surprise, is […]
BN Says Nook Is A $900 Million Business, Set to Double
Barnes & Noble reported first quarter results that were mostly below analysts’ expectations, but showed strong growth in the Nook business and for the first time broke out the entire digital reading segment. The Nook segment–including content, devices and accessories–totalled $277 million for the quarter, with BN saying digital content sales quadrupled over the year. They say the Nook business comprised $880 million last year (and $123 million in 2010), and “is expected to double this year to $1.8 billion.” That news, and projections of smaller losses and much better EBITDA thanks to the Liberty Media investment sent Barnes & Noble […]