Wiley reported sales of $402 million for the first quarter of fiscal year 2009, up three percent. Adjusted net income of $30.2 million benefited from lower debt financing costs on the big Blackwell’s acquisition and a $4.6 million insurance settlement. CEO William Pesce notes in the release that the year “began as expected. Scientific, Technical, Medical, and Scholarly and Higher Education reported year-on-year growth, while Professional/Trade was down from last year’s strong first quarter.” The professional/trade line had $102 million in sales, down three percent from a year ago, as contribution to profit fell 24 percent to $19.5 million. “A […]
Earnings Reports
As in US, Waterstone's Sales Fall
Citing a “tough consumer environment” and in particular a “a weaker book market,” HMV said in a brief trading update for the 18 weeks weeks ending August 30 that same-store sales at the Waterstone’s chain fell 4.3 percent, and declined 1.7 percent after you take out Harry Potter. Total sales at Waterstone’s fell 5.9 percent for the period. The chain launched the Sony Reader yesterday with about 7,000 titles available (they expect to have about 20,000 titles by the end of the year) and has enrolled 1.8 million loyalty card members.Statement
Dollar Rally Intensifies
We’ve spent the last few weeks reporting on publishers’ individual quarterly earnings releases without noting the most significant development for the bottom line of foreign owners: the recent dollar rally. The currency has reversed a long decline and gained ground against both the euro and the pound for nearly all of August as both the EU and the UK face the beginnings of recession. Gains against the British pound have been greater, as the UK is encountering some of the same credit market problems that the US has been dealing with for over a year. In yesterday’s markets, traders were […]
Lagardere Nudges Up
Lagardere amplified their earlier report on sales the first six months of their fiscal year with slightly fuller data, with the publishing group registering sales of 908 million euros, up just 1.3 percent, with EBIT of 71 million, flat on a recurring basis from a year ago. The company cites “a respectable performance in the US, the UK and Spain, but there was a further decline in Literature in France. Part-works were affected by a drop in French and Italian sales, partly offset by good performances in the United Kingdom and Japan.” On the profits, they note “good contributions from […]
Random Reports Weak First Half
Bertelsmann issued its report on financial results for the first half of the fiscal year, with Random House reporting its lowest recorded sales for the period in years at 766 million euros. That’s nearly an eight percent drop compared to last year, and below results for this period since 2004. Operating EBIT decline even more on a percentage basis, falling almost 30 percent to 31 million euros. The report cites “unfavorable currency exchange rates, a slowdown in consumer spending in some key markets, as well as such ongoing economic pressures as rising shipping and marketing costs.” The company says that […]
Calmer Heads on Borders' Prospects
After the stock market’s enthusiastic reception to Borders quarterly report showing a big sales drop and a continuing loss, analysts who cover the stock sobered up a bit. David Schick at Stifel Nicolaus & Co. kept his “hold” rating saying Borders “has yet to prove it can stabilize these metrics and the top-line, let alone grow.” But he did note, “with constant, and really mounting, pressure from online delivery, online e-books, and retail discounters, (Borders) clearly has a tough environment in which to turn around,” he said. “In a sense, that makes margin stabilization more impressive.” Goldman Sachs, which always […]