Wiley reported earnings for the first quarter of fiscal 2020, ending July 30, with sales of $423.5 million. Results were $12.6 million higher than a year ago, but that includes $15 million in revenues from the acquisition of ZyBooks in July. The company took a restructuring charge of $11 million for severance and other costs as part of their “multi-year business optimization program.” (That’s actually below the forecast of a $15 million to $20 million charge in the quarter. On the investor call, cfo and evp John Kritzmacher said the lower charge reflects more work to be done on their […]
Earnings Reports
Penguin Random House Has Strong First Half Profits, Is Lifted by Continuing Bestsellers and Acquisitions
Bertelsmann reported results for the first half of the year on Thursday, with sales at Penguin Random House+ (the PRH joint venture, plus the separate Random House Germany) registering €1.650 billion, up €168 million from a year ago. Operating EBITDA grew to €227 million, up €56 million compared to the first half of 2018. As PRH ceo Markus Dohle celebrated in his letter to staff, “Penguin Random House’s top- and bottom-line revenue is up overall in most of our key markets.” Bertelsmann attributed the gains to strong bestsellers (Michelle Obama’s BECOMING — which sold another 2.8 million units in the […]
Barnes & Noble Education Stays Weak; WH Smith On Track
Barnes & Noble Education reported results for their fiscal first quarter, a seasonally “low activity” period. Sales keep falling — at $319.7 million, down $18.2 million from a year ago, or 5.4 percent lower. They registered declines across all three business segments: College stores, the textbook wholesale business, and their digital student solutions. The announcement celebrates that general merchandise sales comps rose 4.9 percent (gaining $5.9 million) — yet course material sales fell 11 percent (down $13.7 million) and trade book sales declined 11.8 percent (falling $1.2 million). There you have the essential problem of this entire enterprise. The net […]
Quarto Loses A Little Less Ahead of “Particularly Challenging” Fall; BNED Sets Meeting, and More
Quarto released half-year results for 2019, reporting an improvement in earnings — which is to say, a smaller loss — amidst a prediction of a challenging second half of the year. Revenue was up slightly to $56.4m, from $56.2 million in the first half of 2018, but those sales were spread across fewer books, as part of the company’s cost-reduction program. The total operating loss was $(1.2) million, an improvement from $(4.7) million in last year’s period; adjusted loss before tax was $(4.0) million compared to $(6.6) million. The company suggests that the “net debt [has] reduced significantly,” but that’s […]
Sales Fall at Indigo On Cutback In Promotions
Canada’s Indigo reported fiscal first quarter sales Tuesday afternoon with sales falling $12.8 million (or 6.2 percent) to $192.6 million (CA). Superstore comp sales decreased 6.5 percent, small format stores fell 2.4 percent, and online sales were $5 million lower (or down 14.8 percent), at $28.8 million. But the company says the reductions were planned as part of a move to bolster earnings: “The decline in sales was a result of a strategic shift to reduce promotional activity to improve profitability, and eliminate unprofitable sales. Additionally, the general merchandise business continued to be affected by softer discretionary spending in product […]
McGraw-Hill Reports Improved Q2 Results, DOJ “Second Request” For Merger Info
McGraw-Hill reported top and bottom line progress in Q2, touting the success of its digital offerings, which now comprise 51 percent of total billings. Sales of $385 million for the quarter were flat, while total billings of $394 million were up $41 million from a year ago. Meanwhile, the cost of servicing its $2.1 billion dollar debt continues to chew through the company’s earnings. The quarter showed a net loss of $42 million — thanks to $47 million spent paying off interest. The comprehensive loss was higher, at $51 million, a little better than the $54.5 million loss in Q2 […]