In the first quarter of fiscal 2023, Wiley reported sales of $488 million, flat with the same period last year and up from the past several years (Q1 2021: $431 million; Q1 2020: $423.5 million; Q1 2019: $411 million). Operating loss was $(17) million, compared to a $41 million gain last year. The company also reported a net loss of $(18) million, down from net income of $14 million in 2021. Adjusted EBITDA was $64 million, down (34) percent, “due to investments in Research, higher employee costs, increased T&E spend related to the resumption of in-person activities, and market-related challenges […]
Publishers
Penguin Random House Sales Fall Organically, Gain On Foreign Exchange, As Earnings Declined
Bertelsmann reported results for the first six months of the year, with Penguin Random House declining on an organic basis by 1.8 percent — though topline sales still rose by 6.3 percent, due to the weakness of the euro. Sales for the period were €1.916 billion, compared to €1.804 billion a year ago. Earnings were down by both measures, with EBITDA of €257 million, compared to €324 million a year ago. The company noted, “Adjusted for exchange-rate effects, revenue and earnings declined, given the inflationary pressure and supply-chain challenges.” You can see the dual effect on PRH US sales — […]
Quarto to Sell Smart Lab, Close Distribution Service
In reporting results for the first six months of 2022, Quarto followed the classic corporate move of burying the most interesting developments at the very bottom of their announcement. They will sell the toy imprint Smart Lab (acquired as part of Becker & Mayer), “in order to focus on our core publishing business.” The will also close their distribution service, “which will start to impact our sales from July 2022.” They have “received a non-binding offer” for Smart Lab and “a sale is expected to be completed by September 2022.” The business is carried at an asset value of $2.36 […]
Harper Has Modest Finish to Year, Looks Forward to Rings of Power
News Corp. reported fourth quarter and full fiscal year earnings on Monday afternoon, with HarperCollins recording sales for $513 million for the quarter ending June 30, $20 million higher than a year ago — though down a little on an underlying basis. Sales are $20 million higher due to an additional week in the quarter, plus the acquisition of HMH added $14 million in the quarter. As we have noted previously, Harper is penalized by the strong dollar (whereas European-based publishers benefit), so there was a $16 million “impact” from currency fluctuations as well. Digital sales rose 9 percent for […]
S&S Sales Rise 34% in Q2
Paramount reported second quarter earnings for the period ended June 30, with Simon & Schuster sales totaling $293 million, up 34 percent from $219 million last year. Operating income was $80 million, compared to $52 million in 2021, a 54 percent increase. According to a memo to staff from ceo Jonathan Karp, each of the company’s four divisions—adult, children’s, audio, and international—grew in the double digits. Sales of backlist titles popular on social media, predominantly “queen of TikTok” Colleen Hoover, drove results. “It Ends with Us, which we first published in 2016, was the bestselling novel in the trade paperback […]
Reorganization, Acquisitions Lead to Increased Pearson Profits
Pearson announced results for the first half of the year, with sales of £1.79 billion, up 12 percent from the same period last year. Operating profit grew substantially from £9 million last year to £148 million (an increase from £107 million in 2020). Major restructuring costs affected last year’s profits—particularly reorganizing the business into five distinct segments—and this year’s increase is also attributed to “the net gain related to acquisitions and disposals compared to a loss in 2021.” Most business segments saw improvements in the period. Assessment & Qualifications grew 22 percent, including 45 percent growth in US Student Assessment, […]