Simon & Schuster broke from three straight quarters of sales and profit declines with a strong third-quarter showing. Sales of $225 million were up 5 percent from $214 million a year ago (though they are still down 5 percent overall thus far in the fiscal year). OIBDA and operating income were both up 8 percent compared to a year ago, at $25.8 million and $23.4 million respectively. The report credits “the success of best-selling titles in the third quarter of 2008, including The War Within by Bob Woodward and Real Life: Preparing For the 7 Most Challenging Days of Your […]
Earnings Reports
Harlequin Holds On
With Canada’s Torstar reporting results for the their third quarter, their Harlequin unit “had a solid quarter and remains on course for a good year of growth,” even as the economy weakens. The company says “we remain concerned that the US economy could have a negative impact on Harlequin’s results, but to date there is no evidence of this.” In part, the weaker Canadian dollar makes US sales more valuable, though in an odd dichotomy, the company credits foreign exchange for helping to lift sales this period, yet blames FX for reduced profits. Sales for the quarter were $118 million […]
More Reports: Indigo Holds Steady
At Canada’s dominant retailer Indigo, sales for the second quarter fell 2 percent to $205 million (CA), with net earnings “down slightly” at $3.2 million. CEO Heather Reisman says “we were pleased with the bottom line results given today’s challenging economic climate.” Same-store sales rose 2 percent at the Indigo and Chapters superstores, and 7.4 percent at the small-format Coles stores. But online sales decreased 19.8 percent to $21.1 million, attributed entirely (and then some) to the comparison to last year’s numbers for the release of the final Harry Potter Book.Release
Amazon's Quarter Is Fine, But They're Braced for a Grim Finale
Amazon.com held up well enough in their fiscal third quarter, which ended September 30, recording another healthy increase in sales of 31 percent to $4.26 billion (with an $80 million boost due to favorable currency exchange). Operating income rose 26 percent to $154 million. The sales number was in line with analysts’ expectations but the income figure fell well short. Of greater concern to markets is Amazon’s reduced guidance for the fourth quarter. Sales are projected to fall between $6 billion and $7 billion (an increase of between 6 percent and 23 percent), and operating income is projected to range […]
Quarto Remains Confident
After reporting a loss three months ago, the Quarto Group says that sales for their fiscal third quarter were 34.9 million pounds, well ahead of last year (when they acquired MBI) but growing at a slower rate than in the first two quarters of year. They now say operating profit for the nine months of this fiscal year are 6.2 million pounds, up 15 percent from a year ago. (Interest on borrowings to acquire MBI reduces those profits by 2.7 million pounds.) CEO Laurence Orbach says “We remain on the lookout for growth opportunities.” The company cites a “very strong […]
Redstone's Trouble Runs Deep; Margin Call for Scholastic's Robinson
The financial world continues to speculate on just how deep Sumner Redstone’s cash squeeze will strike. On Friday his privately-held National Amusements said it “is engaged in constructive discussions with its bank group and noteholders regarding a covenant issue under National Amusement’s debt, which is unsecured.” They blamed “recent unprecedented market volatility which led to a precipitous drop in the value of the CBS and Viacom shares.” “Sources close to Redstone and Viacom say the executive’s current cash situation is so dire that selling Viacom or CBS – which he also controls – is now a real possibility. Redstone used […]