With WH Smith’s High Street bookstores in a long, steady decline, the parent company’s earnings report for the first six months shows only light falloff from last year’s comps. Sales of £266 million were down just £4 million from the same period a year ago, with trading profit of £24 million down £2 million. The company noted a “good performance in books, supported by Prince Harry’s autobiography Spare” and “a good performance from Mother’s Day across our stores and digital channels.” There is no expectation of growth; the company has consistently focused on wringing cash out of the bookstore business: […]
Earnings Reports
HBG US Falls in First Quarter, While Lagardere Publishing Sales Grow Around the World
Lagardere announced results for the first quarter of 2023, with publishing sales of €570 million, up 3 percent as reported and 1 percent on a like-for-like basis from last year. “In a less dynamic market, Lagardère Publishing maintained strong trading momentum. The difference between reported and like-for-like revenue is primarily attributable to a €12 million positive scope effect linked chiefly to the acquisition of Welbeck Publishing Group and Paperblanks,” the company said in a statement. US sales were less successful, down 11 percent due to “a lighter publication schedule compared to 2022 and in a sluggish book market.” Hachette Book […]
Quarto Sales Down But Profits Up in 2022
Quarto announced results for 2022, with sales of $141 million, down 7 percent from $151.5 million in 2021, attributing the loss to a downturn in consumer spending and a contraction in the book market. Even so, operating profit was up 32 percent to $21.1 million, which the company credits to “nimble publishing maximizing opportunities which arose, strong cost-control and reduced finance costs.” The company’s net debt is $0.6 million, down from $5.5 million, and long-term borrowings are $9.3 million, down from $28.5 million. They repaid a total of $15 million in loans from C.K. Lau and 1010 Printing during the […]
For 2022, HBG USA Was Lagardere’s Biggest Division
Earlier this month, Lagardere published their full annual report (478 pages long) which offers additional detail on the performance of the publishing division. Notably, due to a combination of the recent Workman acquisition, the unusual strong US dollar, and a weaker performance in France, for the first time ever Hachette Book Group USA generated more revenue for the company than Hachette Livre in France. Sales in the US and Canada reached €867 million, compared to €734 million in 2021 (though in dollars, that converts to sales of roughly $913 million in 2022, and $868 million in 2021; their acquisition of […]
PRH Grows Topline on Strong Dollar, As Profits and Organic Sales Fall
Bertelsmann announced results for the full year 2022, and while the parent company’s sales grew 8.3 percent to a record of €20.2 billion, sales at Penguin Random House rose 4.8 percent (or €193 million) to €4.223 billion—below the target for the year and “largely due to exchange rate effects,” especially the strong US dollar. Organically, sales fell 3.3 percent, while foreign exchange produced a gain of 7.3 percent during the year. Those “reduced sales levels” were “mainly due to normalization of book markets.” Operating EBITDA for PRH fell 11.8 percent to €666 million, down from €755 million in 2021, “due […]
Scholastic Lowers Guidance as Seasonally Soft Quarter Is Softer Than Expected
On Thursday Scholastic announced earnings for their fiscal third quarter ending February 28, with sales down from last year, resulting in a lowered outlook and a falling stock price. They now expect full year sales growth of 4 percent rather than the previously expected 8 to 10 percent, and adjusted EBITDA of $175 million to $185 million, down from a forecast of $195 million to $205 million. The stock fell sharply, down over 20 percent in the first hour of trading on Friday, on the reduced expectations. Sales for the quarter, which president and ceo Peter Warwick was quick to […]