Bertelsmann reported full results for 2016 on Tuesday morning, with sales at the Penguin Random House division falling 9.6 percent to €3,361 million (in line with the 10.7 percent decline they reported after the first six months of the year). Operating EBITDA was €537 million, compared to €557 million a year ago. (From here forward, we will refer to the PRH reporting division, which includes the separate Random House Germany, as PRH+, and will use PRH for just the Penguin Random House joint venture.) At Penguin Random House on its own, sales were €3,059 million, down €335 million, or 9.9 […]
Earnings Reports
Trade Sales Fall In Down Quarter for Scholastic
Scholastic reported lower sales and a higher seasonal loss for their fiscal third quarter, ending February 28, but the company said it “controlled costs effectively, protecting profits despite reduced sales in clubs.” Sales of $336 million were down by 8.2 percent ($30 million), on “lower revenues in book clubs and trade,” with an operating loss of $23.6 million — $7.2 million higher than a year ago. “Trade sales returned to more normal levels after an exceptional first half driven by new Harry Potter publishing,” the company said, though trade revenues were below the same point a year ago: At $49.2 million, trade […]
Lagardere Publishing Profit Rises, As HBG USA Sales Fall 4.2 Percent
Lagardere followed up their headline sales report for 2016 with fuller details, adding information on profits and other granular breakdowns. Group recurring EBIT came in at €395 million versus €378 million in 2015, and publishing EBIT of €208 million was up €10 million — comprising over half of the group’s profits. The release notes, “The increase results from three factors: profitability gains in the US underpinned by strict cost discipline; a good performance from Partworks in Japan and Spain; and the one-off impact of new titles such as Harry Potter and the Cursed Child and Fantastic Beasts in the UK, […]
Wiley’s Book Sales Continue to Fall
Wiley reported third quarter results on Tuesday morning, and the company continues to perform well in nearly every area and medium except for their oldest one: books. Companywide sales were flat at $436.5 million, with net income rising $14 million to $53 million in the period. They took a $9.1 million restructuring charge in the quarter “primarily related to the consolidation of facilities and severance provisions related to additional efficiency gains.” CEO Mark Allin noted that “publishing revenue showed a significant decline due to market weakness in books and reference material, particularly print.” Wiley’s book sales have been declining continuously […]
Barnes & Noble Reduces Guidance Again After Bad Quarter, Faded Rebound
Barnes & Noble followed a bad holiday sales period with a poor full report on their fiscal third quarter, reducing both sales and earnings expectations for the full year. After ceo Len Riggio said in early January, “Post-holiday traffic and sales have improved and we are optimistic for the remainder of the fiscal year,” adding, “we think we’re going to be back on track before the holidays and through the holidays,” we learn he was wrong. By the company’s account there was a little window of rebounding that has already faded: “despite sales improvements post-holiday, trends softened in late January […]
Riggio’s MBS Sold to Barnes & Noble Education for $174 Million
The privately-held MBS Textbook Exchange, majority owned by Len Riggio and other Riggio family members, has been sold to Barnes & Noble Education — which also used to be privately owned by the Riggio family, and where the Riggios currently hold about 16 percent of shares — for $174.2 million in cash. For the fiscal year ending August 31, 2016, MBS had sales of $500 million and EBITDA of approximately $54.7 million. BNED management expects the purchase to be accretive to earnings in fiscal 2018 and “deliver operational synergies over time.” A used textbook wholesaler, which also sells new and used […]