It surprises some people, but trade publishing sales have been good this year. Really. Dollar sales, as measured by the AAP, grew 5.8 percent in the first 10 months of 2024. Adult fiction remained particularly strong, helped by big sales for Sarah J. Maas (who moved 8.8 million print units alone) and the rapid rise of Freida McFadden (who sold roughly 5.3 million print units). The arrival of Spotify drove significant growth in audiobook sales—which have outpaced ebooks sales for the year so far for the first time ever. And the big publicly-reporting publishing companies boosted the topline with acquisitions […]
Earnings Reports
Scholastic Institutes Layoffs As Sales Fall in Q2
Scholastic reported financial results for the second quarter ended November 30, with sales of $545 million, down 3 percent, an expected outcome due to the timing of the company’s big book publications. Operating income dropped 26 percent to $74.4 million with adjusted EBITDA down 12 percent to $108.7 million due to lower sales in the children’s publishing and distribution and education solutions segments. In Children’s Publishing and Distribution, sales were down 6 percent to $367 million with operating income down 9 percent to $102.1 million. Trade books sold $103 in the quarter, down 13 percent, due to lower frontlist sales […]
Quarterly Profits Jump at Barnes & Noble Education
After a preliminary report a month ago, Barnes & Noble Education announced full results for their second quarter ended October 26, with sales down 1.4 percent to $602 million due to the closing of 109 physical and virtual stores (many of which, they say, were underperforming). Previously they estimated sales would “essentially flat.” Net income doubled to $49.7 million, up from $24.9 million, “due to improved operating income, lower interest expense, and reduced restructuring and other charges.” Adjusted EBITDA was up 29.1 percent to $66 million, attributed to $13 million in cost savings from closed stores, “productivity initiatives.” They estimate […]
Wiley Looks Toward “Continuous Improvement”
Wiley announced results for the second quarter ended October 31, reporting sales of $427 million, down 13 percent due to the loss of revenue from divested businesses. Operating income grew 39 percent to $64 million. President and ceo Matthew Kissner said, “Continuous improvement is a way of life for us now, and it’s beginning to pay off in our quality growth and margin expansion. Learning has had a good year so far, both academic and professional, and research delivered low-single digit growth with leading indicators and favorable comparisons signaling a better second half ahead.” Notably, Kissner also said, “Additionally, we […]
High Street Will Continue to Become A Smaller Segment at WH Smith
On Thursday, British retailer WH Smith reported sales for the full year ended August 31. For the year, sales rose 7 percent to £1.918 billion with profit before tax and non-underlying items up 16 percent to £166 million. High street sales were “in line with expectations” at £452 million, down 4 percent from £469 million. Profit of £39 million was down from £43 million a year ago. The company made plain what has been clear for a while from their results and their strategy: As they grow the travel business, the high street division—which accounts for about 15 percent of […]
Audiobooks Contribute to Higher Spotify Margins
In its third quarter earnings report on Tuesday, Spotify noted that audiobooks (along with music) contributed to a gross margin increase for the brand’s premium offering, up 473 bps to 31.1 percent. Premium subscribers grew 12 percent compared to a year ago, up to 252 million. Those subscribers are up 6 million from the second quarter and the company expects to add another 8 million in the current quarter. Overall sales for the company were up 19 percent to €3.988 billion ($4.227 billion at current exchange rates) and operating income was €454 million. According to the Wall Street Journal, “a […]