Shares in travel retailer WH Smith plunged over 42 percent in Thursday trading after the company disclosed an accounting error found while preparing results for their fiscal year ending August 31. They said there was “an overstatement of around £30 million” of expected profit from their North American division, “largely due to the accelerated recognition of supplier income.” Company full-year pre-tax profit is now expected to be “in the region of £110 million” as a result. The North American division was previously expected to have profit of £55 million on its own, now likely to be £25 million instead. They […]
Earnings Reports
McGraw Hill Posts Slight Improvements in First Public Quarter
Newly public McGraw Hill announced financial results for the first quarter ended June 30, with sales of $536 million, up 2 percent from $523 million, “driven primarily by re-occurring and digital revenue growth.” Adjusted EBITDA was up 7 percent to $191 million. They had a net income of $.5 million, compared to a $(9 million) loss during the same period in 2024. The company noted that the first half of the year is their strongest due to the academic calendar, with approximately 60 percent of sales and 65 percent of adjusted EBITDA. “McGraw Hill delivered strong performance in the fiscal […]
Harper Collins Has Soft Finish to Year with Second Highest Sales on Record
News Corp announced financial results for the fourth quarter and full year 2025, with fourth quarter publishing sales at Harper Collins down 4 percent to $494 million, due to a strong comparative period, softer consumer sales, and “fewer notable frontlist titles,” partially offset by $4 gain from currency fluctuations. EBITDA fell 12 percent to $50 million. Brian Murray discussed the sales trend with PL. “We definitely felt the momentum in the marketplace cool off,” he said, noting that “industry-wide promotions in May just didn’t deliver,” from multiple major retailers. And “Prime Days also didn’t quite deliver the same way” they […]
Profits Grow in Pearson’s First Half
Pearson announced financial results for the first half of the year ended June 30, reporting sales of £1.72 billion, down 2 percent on a headline basis due to currency fluctuations, up 2 percent on an underlying basis. Operating profit rose 10 percent to £240 million, “driven by operating leverage on sales growth, gains on disposals and the reversal of impairments on property assets.” Adjusted operating profit grew 2 percent to £242 million. In the Higher Education segment, sales were flat at £337 million with an adjusted operating loss of £(3) million, an improvement from £(7) million last year. Sales growth in […]
Storytel Updates Guidance on Strong Q2
Swedish audiobook company Storytel announced financial results for the second quarter. Sales grew 4 percent to SEK958 million, or 8 percent at constant currency, due to “healthy growth in the Streaming segment due to strong growth in subscriber intake and a solid development in the Publishing segment.” Bokfabriken, which Storytel acquired in Q1, contributed SEK10.6 million. Operating profit was up 75 percent to SEK82 million and EBITDA grew 46 percent to SEK161 million. “We have delivered a robust financial performance, driven by a high subscriber intake, solid EBITDA growth and strong cash generation giving us the strategic possibility to invest […]
Reorg, New Hunger Games Book Help Spur Scholastic’s Turnaround
Scholastic reported results from their fourth quarter and full year ended May 31. Sales for the quarter were $508, up 7 percent, with adjusted EBITDA up 1 percent to $91.2 million. Operating income was $53.5 million, a 13 percent increase. Excluding $9.9 million in one-time charges, operating income was down 5 percent to $63.4 million, due to “employee-related expenses.” In the Children’s Book Publishing and Distribution segment, sales were up 9 percent to $288.2 million. With a higher fair count, book fairs increased 5 percent to $177.8 million. Book clubs experienced lower orders, resulting in a 9 percent drop to […]