Paramount Global reported first quarter 2022 results on Tuesday morning, with sales at Simon & Schuster of $217 million, up $32 million or 17 percent. The company recorded operating income of $50 million, up significantly over $27 million a year ago. In a memo to staff, ceo Jonathan Karp attributed the continued growth to “the strength of our backlist, favorable returns projections, and the BookTok phenomenon.” He said that, “All of our publishing groups, nationally and internationally, and our distribution client business had double-digit growth.” With those tailwinds Simon & Schuster outperformed the industry, which has been reckoning with very […]
Earnings Reports
Higher Ed Sales Still Falling, As Pearson Rises Overall
Pearson gave a brief first quarter trading update on Friday. Their actual textbook publishing business, reported through the higher ed segment and still their second-largest division, was down 5 percent, “due to expected declines in US Higher Education reflecting the continued decline in enrollments and courses per enrollment.” International textbook businesses that are up for sale (“under strategic review” in corporate-speak) fell by 11 percent, “as expected.” But overall “underlying sales” — which leave aside currency exchange, which can have a big influence on their actual results, rose 7 percent in the period. Separately, the company announced another new acquisition, […]
WH Smith’s High Street Sales Flat While Travel Recovered
UK retailer WH Smith reported six-month results for the period ended February 28. Sales at their High Street bookstores remained flat at the historically low level of £270 million, which had been down (14) percent a year ago compared to before the pandemic, when sales were £315 million (and that period, in turn, was down from £333 million as of February 2019). High Street trading profit was £35 million, up slightly from £33 million last year. The company said, “Our High Street business delivered a resilient and profitable performance in the period, despite the challenges facing the UK high street…and […]
Lagardere Publishing Gains On Acquisitions and Rising Dollar
Lagardere reported first quarter sales for the period ended March 31, with publishing sales of €554 million, up from €509 million, an 8.7 percent topline increase over the first quarter of 2021. Most of the gains came from acquisitions — adding €25 million in all, including €22 million from Workman, and €17 million in foreign exchange gains, with the euro steadily losing ground against the US dollar and British pound. The sale of Brainbow reduced sales by about €1 million. The company cited the pattern of increased pandemic sales as well, while noting that “March saw the emergence of less […]
Waterstones Sales Fell 38.5 Percent In Pandemic Year
Waterstones filed their annual report for the fiscal year ending a year ago, as of April 24, 2021, revealing a substantial decline in sales. The company reached sales of only £231 million in the year, down £135 million (or 38.5 percent) from £376 million in the prior year. Operating profit was £13 million (versus £30 million the year before) and profit before tax was £4.17 million (versus £23 million the year before). Those positive margins seem to have come from substantial government support — roughly £41 million during the reported period — and a reduction in force, with the average […]
Backlist Lifted Penguin Random House Sales In 2021
Bertelsmann reported financial results for 2021, with Penguin Random House showing increased revenues and operating results “thanks to numerous successful new releases, robust backlist sales and continued high demand for digital audiobooks.” Sales were €4.03 billion, up 6 percent from €3.802 in 2020. Operating EBITDA was €755 million compared to €691 million, a 9.2 percent increase. The company noted, “In addition to the recovery of the advertising-financed businesses, the positive performance of the book publishing and services businesses was a key factor in this strong revenue growth.” US-based sales were €2.275 billion, up €67 million. (That growth is made smaller […]