The good news is that Pearson issued a brief third-quarter trading update (with no actual sales or profit figures) in which they raised their profit expectations for the full year. The funny part is the way that reputable news organizations (like the BBC and the Telegraph), suffering from ebook fever, come to the erroneous conclusion that “Pearson said that surging demand for e-books had helped drive a better-than-expected performance.” (They are fooled in part by the stock line that Penguin ebook sales increased threefold, which was also the case at the six-month mark–and this time a year ago ebook sales […]
Publishers
Bloomsbury Says Business Is “Resilient”; Book Sales Down 3 Percent at WH Smith
In a third-quarter trading statement, Bloomsbury says their “trading in the UK remains resilient.” They continue to expect the release of the new Harry Potter movie in November to boost book sales. The company writes: “Overall, business is performing well for the group. The outcome for the year is still dependent on the level of consumer and business to business demand between now and the end of the financial year. Major database projects are under consideration which forms part of new business in 2010.” Release Also in the UK, yesterday WH Smith reported preliminary results for the fiscal year. Same-store […]
Perseus Perseveres to Improve During the Year
In a slightly belated fiscal year-end letter, Perseus Books Group ceo David Steinberger writes to employees about the accomplishments and progress of their year (which ended June 30). In a period that began with layoffs, a summer furlough and other cutbacks, Perseus met their financial goals steadily enough to progressively lift their wage freeze, restore pay cuts taken by senior management, and as of the end of June resume their 401k matching. Steinberger writes, “What made this year so gratifying was the way we battled on so many fronts simultaneously. We fought to offset the fallout from the global financial […]
Trade Sales Rise at Scholastic, But Overall Results Decline for First Quarter
Sales at Scholastic fell $24.7 million or 8 percent, at $290.9 million for their fiscal first quarter, and the operating loss (before interest and taxes) was $46.8 million, 33 percent higher than a year ago. In their children’s book and publishing division, sales of $72.8 million were down 3.4 percent, with an operating loss of $51.6 million. But Scholastic says trade sales rose 9 percent, thanks in part to Suzanne Collins, while expenses reflected “the planned increase in spending on digital initiatives.” The company says Scholastic Education revenue suffered from comparisons to last year, when they “benefited significantly from the […]
Sales and Profits Rise at Wiley, Though “Consumer” Books Are Weak
Wiley announced first quarter sales of $408 million, up 5 percent, including “strong growth” in the professional/trade and higher ed divisions, as operating income rose 13 percent to $63 million. Professional/trade sales of $100 million were up 11 percent overall (and 10 percent in the US), with contribution to profit of $22 million, due to “top line growth, product mix, and higher-margin eBook sales, partially offset by increased employment costs.” As a category, however, “consumer” books were the weakest part of the portfolio, falling 7 percent. Wiley says trade/professional ebooks doubled in the quarter to “nearly $4 million.” They now […]
Sales and Profits Rebound At Random House
Random House reported sales for the first half of the year of 791 million euros, up 57 million euros (or almost 8 percent) from a year ago, as operating EBIT doubled to a still-modest margin of 40 million euros. CEO Markus Dohle writes that “our performance was led by the US division, which combined bestseller dominance with lower physical returns.” Stieg Larsson’s sales of 6.5 million copies in the US and Germany were a “substantial” factor in the improved results. Dohle also points to the company’s “robust digital-publishing momentum.” He says that within the fiscal year, worldwide digital sales will […]