Scholastic reported fourth quarter and full-year results for the period ended May 31. For the quarter, sales were $528 million, up 3 percent over last year’s record, and operating income rose 40 percent to $92 million. Earnings before tax were up 78 percent to $95.6 million. That put earnings per share at $2.26, well ahead of last year’s $1.46 per share and of analyst expectations of $1.70 per share. With higher earnings, good sales, and a forecast of more sales growth in the year ahead, the publisher’s stock rose approximately 13 percent in the first hour of trading on Friday. […]
Earnings Reports
Bloomsbury Grows 9 Percent in First Quarter
Bloomsbury announced a brief trading update for the first quarter ended June 30, reporting a 9 percent increase in sales. The company says that results have been “in line with expectations,” expecting sales of £273 million and profit before taxation and highlighted items of £32.5 million for the year. In the consumer division, Sarah J. Maas, Samantha Shannon, and JK Rowling remained top sellers. In the non-consumer division, there was growth in Bloomsbury Digital Resources, “reflecting the ongoing shift to greater digital learning.” In a release, the company stated, “The Board remains confident in Bloomsbury’s ability to continue to deliver long-term […]
BNED Delays Earnings Report As It Renegotiates Loans, Faces Possible Going Concern Warning
Barnes & Noble Education has notified the SEC of a late filing of its year-end financial report, as it attempts to refinance its loans with creditors, or reach “other liquidity solutions,” in an effort “to strengthen its liquidity and financial position.” Notably, “If the Company does not consummate a refinancing or other transaction to sufficiently enhance its liquidity before the issuance of the Company’s audited financial statements as of and for the fiscal year ended April 29, 2023…management likely would conclude that substantial doubt about the Company’s ability to continue as a going concern exists.” They note elsewhere in the […]
Booktopia Issues Shares to Raise $6.5 Million for Distro Center
Australian retailer Booktopia announced commitments to raise $6.5 million from a big new share issuance, with a price of .12 cents per share, which will predominantly be used to fund a new distribution center. The “Next Gen customer fulfillment center” is expected to be operational in late August. “After two years of losses, completing the Next Gen CFC and with the other business improvement initiatives already announced will reset the cost base of the business,” Booktopia chair Peter George said in a release. The company expects EBITDA loss for fiscal year 2023 to be $5 million, compared to a profit […]
February Cyber Attack Hits Indigo’s Results
Canadian bookseller Indigo released results for “a rollercoaster year,” ended April 1. Sales for the year were flat at $1.058 billion, compared to $1.062 billion a year ago, challenged by a ransomware attack in February and “diminishing consumer confidence” caused by inflation. Adjusted EBITDA was a loss of $(20.5) million, compared to $32.5 million in 2022, and the company reported a net loss of $(49.6) million, compared to last year’s net earnings of $3.3 million. On their own, fourth quarter sales were down 12 percent to $194.2 million, with a net loss of $(42.5) million, compared to a $(23.4) loss […]
Storytel to Pilot AI Audiobook Narration; Aims for Organic Growth
Swedish audiobook company Storytel has partnered with AI speech software provider ElevenLabs to produce AI-narrated audiobooks and develop AI voices “specifically tailored to Storytel’s core markets.” In a release, Storytel said their goal is to be a leader in AI narration “as a complement to organic voices.” They are also investing in ElevenLabs’ ongoing financing round, though the amount has not been disclosed. “We are proud and excited to have reached this multi-year agreement with ElevenLabs. As AI voices have become more sophisticated and versatile, Storytel aspires to offer our customers more choice by deploying this best-in-class solution to tailor […]