Lagardere Publishing reported third quarter results on Thursday for the period ending September 30. Sales of €607 million were down 6.1 percent compared to €646 a year ago (and a big €675 in 2016), due to an expected weakness in European educational sales. The lack of curriculum reform in France accounted for that division’s decline of (14.7 percent), with weak educational sales also weighing on sales in Spain/Latin America (down 8.2 percent), and the UK (down 6.7 percent). The UK trade division also had a “lighter release schedule.” But HBG USA had a “sparkling performance,” up 5.1 percent for the quarter, […]
Earnings Reports
Harper Has “Robust” Profit Gain On Modest Sales Boost
Sales gained at HarperCollins for the fifth consecutive quarter, rising $17 million to $418 in their fiscal first quarter. “Robust profit growth” saw EBITDA rise to $68 million in the period, up $20 million for a year ago. Sales gains would have been higher, but were “partially offset by $12 million of lower revenues as a result of the adoption of the new revenue recognition standard.” We explained that standard earlier in the year, in the context of how it lifts Penguin Random House’s ebook sales, but it applies broadly to “revenues from contracts with customers.” A HarperCollins spokesperson confirms […]
Indigo Revenue and Profitability Down, Online Sales Up
Indigo released second quarter results for the period ended September 29. Revenue was $216.3 million (CA), a decrease of $8.3 million, “driven by the closure of a few low performing stores and renovations in 12 stores as the Company continues to transform its retail operations.” They closed two stores in the quarter, one of which is being relocated. Comparable retail superstore sales for the quarter decreased 1.4 percent, driven by softer store traffic, while small format store comp sales increased 3.1 percent. Meanwhile, the net loss increased measurably, at $19.1 million ($.70 per share) compared to a net loss of […]
Better Profits, Stock Drop at Amazon
Amazon reported third quarter results on Thursday afternoon, with much better than expected net income of $2.88 billion, on sales of $55.6 billion (up 20 percent). But the stock is down on the news — albeit after rising 7 percent during the day on Thursday — declining 8.5 percent or about $150 a share in the first hour of trading on Friday. The reason is that investors didn’t like the forecast sales growth for the big fourth quarter of only 10 to 20 percent (with operating income expected to be anywhere from flat, at $2.1 billion, up to $3.6 billion. […]
Bloomsbury Shows Modest Six Month Gains, Lead by Adult Trade
Bloomsbury announced half-year results for the period ended August 31, 2018, with overall revenue up 4.4 percent to £75.3 million, an increase of £3.2 million over the same period last year. Adjusted profit before tax — which excludes a major increase in exceptional costs in the period — was modest at £2.9 million, though up 13 percent from £2.5 million during the period last year. Adult trade was the big performer, with sales rising £2.9 million to £15.9 million, due in part to renewed interest in the late Anthony Bourdain’s Kitchen Confidential. Meanwhile, the bigger Children’s division declined £.6 million to £31.1 […]
Corporate: Pearson Gains On Steady Quarter, Scribd Pairs with NYT
Pearson provided a trading update on the first nine months of 2018. Total revenues were flat, with a 3 percent decline in US higher education courseware offsetting growth in the rest of the company. The company attributed some of the revenue decline to delays caused by the implementation of new enterprise software in the US, which it expects to “largely reverse” in the fourth quarter. That growth elsewhere, along with revised estimates for some one-time tax benefits, helped lift shares in London today. The traditionally terse comment on trade book performance noted, “Penguin Random House is performing in line with […]