CBS reported sales at Simon & Schuster for the second quarter of $186 million, down 7 percent from a year ago. It’s the third straight quarterly decline for the publishing unit and once again the statement says that “bestselling titles…did not match contributions from prior year titles.” OIBDA and operating income decreased 15 percent to $17 million and 19 percent to $14.6 million, respectively, with “lower revenues partially offset by lower royalty expenses.” In additional remarks the company indicated they “are also feeling, as we did the last quarter, the effects of higher freight costs,” and are seeing higher paper […]
Earnings Reports
Harlequin Turns in Better Quarter
Torstar reported second quarter earnings with sales at their Harlequin unit of $119 million (CA) up 3.5 percent from a year ago, and EBITDA of $19.8 million up 44 percent (for a margin of 16.6 percent). The company says Harlequin “is well on track to deliver solid growth for the year, albeit not at the pace of the second quarter…. After a very strong second quarter, we expect Harlequin’s growth to moderate in the second half of the year resulting in solid growth for the year as a whole. The U.S. economy could have a negative impact on Harlequin’s results, […]
Indigo Rises in First Quarter
Sales at dominant Canadian chain Indigo rose 3.1 percent in their first quarter to $191 million (CA), while their net loss was reduced by more than half, to $1.3 million. Same-store sales were up 3.3 percent at the Indigo and Chapters superstores, while the smaller format Coles stores were up 5.4 percent, and online sales rose 7.7 percent, to $21 million. Release
Earnings Bits
In a Bloomberg story before CBS’s earnings release tomorrow, investors and analysts express dissatisfaction with parent company CBS’s expensive $1.8 billion purchase of CNet and subsequent 30 percent drop in their stock since May. Portfolio manager John Miller (whose firm held 5.5 million shares this March) wishes CBS would sell Simon & Schuster and spend $1.5 billion on a stock buyback program. Other investors are hoping for news of a buyback, and CEO Leslie Moonves says in a phone interview, “Because of our strong balance sheet, we are still in a position to buy back stock. We haven’t ruled that […]
Penguin Jumps in First Half; Informa Deal Looms
With parent company Pearson reporting financial results for the first half of the fiscal year, Penguin continued their hot streak with sales up 9 percent to 408 million pounds and profits up 22 percent to 26 million pounds. The company says “Penguin has made an excellent start to the year, with a particularly strong first-half publishing schedule. It is on track to reach its goal of double digit margins for the full year.” In a follow-up call, group ceo John Makinson offers a “slightly cautious note” for the balance of the year. He notes that current results are “somewhat influenced […]
Lagardere Nudges Up
Lagardere Publishing issued their abbreviated second quarter/first half of the year trading update which reports sales–with the second-quarter generating 494.7 million euros–but not profits. Sales are up less than two percent for this quarter after registering slightly above flat in the first quarter. In the US, “growth continued at a rapid pace, driven in particular by the outstanding success of the latest Stephenie Meyer saga.” The UK had “a highly satisfying quarter thanks to bestsellers and children’s books” and in France, Larousse and Hatier “recorded strong growth, but literature saw a further decline.” Overall, the company predicts that “given the […]