Simon & Schuster continued its hot streak in the first quarter of 2023, reported Thursday morning by parent company Paramount Global, with sales of $258 million, up $41 million from a year ago, and operating income of $58 million, up $8 million. As ceo Jonathan Karp wrote to staff, “All of our publishing divisions increased revenue, and all of our domestic groups had double-digit growth.” International sales were “a little over flat.” In a letter to staff, Karp confirmed what we had already heard from prospective bidders, which is that, “As expected, Paramount has resumed the process of selling Simon […]
Earnings Reports
Pearson Higher Ed Sales Drop 5%, As Expected
Pearson announced a brief trading update on results for the first quarter of 2023, with overall sales up 2 percent and sales excluding Online Program Management (which is up for sale) and international courseware local publishing (which is being wound down) were 6 percent. “Performance in each of Pearson’s divisions in line with or ahead of our expectations,” the company said in a release. Those expectations were low for Higher Education sales—the only actual publishing division remaining at what has become a testing, workforce skills and English language learning company: The dropped 5 percent, “including the anticipated deferral of Pearson+ sales […]
WH Smith Celebrates Only Small Declines at Their Bookstores
With WH Smith’s High Street bookstores in a long, steady decline, the parent company’s earnings report for the first six months shows only light falloff from last year’s comps. Sales of £266 million were down just £4 million from the same period a year ago, with trading profit of £24 million down £2 million. The company noted a “good performance in books, supported by Prince Harry’s autobiography Spare” and “a good performance from Mother’s Day across our stores and digital channels.” There is no expectation of growth; the company has consistently focused on wringing cash out of the bookstore business: […]
HBG US Falls in First Quarter, While Lagardere Publishing Sales Grow Around the World
Lagardere announced results for the first quarter of 2023, with publishing sales of €570 million, up 3 percent as reported and 1 percent on a like-for-like basis from last year. “In a less dynamic market, Lagardère Publishing maintained strong trading momentum. The difference between reported and like-for-like revenue is primarily attributable to a €12 million positive scope effect linked chiefly to the acquisition of Welbeck Publishing Group and Paperblanks,” the company said in a statement. US sales were less successful, down 11 percent due to “a lighter publication schedule compared to 2022 and in a sluggish book market.” Hachette Book […]
Quarto Sales Down But Profits Up in 2022
Quarto announced results for 2022, with sales of $141 million, down 7 percent from $151.5 million in 2021, attributing the loss to a downturn in consumer spending and a contraction in the book market. Even so, operating profit was up 32 percent to $21.1 million, which the company credits to “nimble publishing maximizing opportunities which arose, strong cost-control and reduced finance costs.” The company’s net debt is $0.6 million, down from $5.5 million, and long-term borrowings are $9.3 million, down from $28.5 million. They repaid a total of $15 million in loans from C.K. Lau and 1010 Printing during the […]
For 2022, HBG USA Was Lagardere’s Biggest Division
Earlier this month, Lagardere published their full annual report (478 pages long) which offers additional detail on the performance of the publishing division. Notably, due to a combination of the recent Workman acquisition, the unusual strong US dollar, and a weaker performance in France, for the first time ever Hachette Book Group USA generated more revenue for the company than Hachette Livre in France. Sales in the US and Canada reached €867 million, compared to €734 million in 2021 (though in dollars, that converts to sales of roughly $913 million in 2022, and $868 million in 2021; their acquisition of […]