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 […]
Earnings Reports
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 […]
Bloomsbury Expects to Finish Fiscal Year with Better Results Than Forecast
Bloomsbury released a brief trading update for the year ended February 28, with expected sales of more than £260 million, above their previous expectation of £242.6 million, and profit before taxation and highlighted items of £30 million (compared to a forecast of £26.9 million). At the six-month mark, the company had reported their highest-ever sales and profits at that point, and strong sales continued through the fiscal year. CEO Nigel Newton said, “Bloomsbury’s unique position in combining consumer and academic publishing combined with our investment in high quality content and company acquisitions has enabled us to achieve excellent trading for […]
BNED to Drop Stores That Don’t Bundle Course Materials
Barnes & Noble Education announced results for the third quarter ended January 28, with sales of $447 million, up 11 percent from $403 million last year. Net loss was $25 million, down from a loss of $36.8 million in 2022. These improvements are tempered by the fact that results are still down from pre-pandemic earnings, which were falling even then. (For comparison, sales for the same quarter in 2020 were $502 million, $550 million in 2019, and $603 million in 2018.) In a call with investors on Thursday, ceo Michael Huseby said that First Day Complete, a program that bundles […]
Wiley Reorganizes Education Reporting, Takes Impairment Charge and Reduces Guidance, As Quarter Is “Below Expectations”
Wiley reported third quarter earnings for the period ended January 31, with sales down 5 percent to $491 million. They showed an operating loss — of ($67.1) million — compared to profit of $46 million last year, mostly due to a non-cash goodwill impairment charge of $100 million. Adjusted EBITDA fell 2 percent (or 3 percent at constant currency) to $97.7 million. Following the challenging quarter they also reduced their outlook for the fiscal year, “primarily due to increased academic market headwind.” Sales are expected to be $45 million to $55 million lower than forecast, and adjusted EBITDA is expected […]
Pearson Restructures Higher Ed Sales, Keeps Australia and Canada Businesses
Pearson released preliminary results for 2022, reporting sales of £3.84 billion, up 12 percent from the previous year (helped considerably by the strong dollar and weak British pound, so up 5 percent on an underlying basis). Operating profit was £271 million, compared to £183 in 2021. The results put in relief how little of a “publishing company” Pearson has become (and should be of note to all of the list-makers and rankers). Higher Education sales were £898 million, up from £849 million a year ago but actually down 4 percent on an underlying basis, “driven by a decline in enrollments […]