In line with their muted January “trading update,” Pearson released its full 2018 results, reinforcing the continuing trend: Their major division, the US higher education courseware business, continues to decline as they continue its “digital transformation,” weighing down stable performance in the rest of the company’s continuing operations. Sales were £4.13 billion, down from £4.51 billion in 2017, with underlying sales down 1 percent. As indicated in January, to the surprise of analysts, US higher ed sales fell 5 percent. Adjusted operating profit was £546m for 2018, in the upper half of their guidance. As for Penguin Random House, in which […]
Publishers
Simon & Schuster Finishes with Softer Sales, But Sets New Profit Record
CBS reported fourth quarter and full year 2018 results on Thursday, with sales at Simon & Schuster moderating in the final quarter to $218 million (down from $235 million a year ago), even as operating income continued to grow, at $46 million (up $1 million from a year ago). As ceo Carolyn Reidy underscored, it marks the company’s sixteenth consecutive quarter of growth in profits. Full year sales fell $5 million short of last year’s mark, at $825 million, as the company registered record operating income yet again, at $144 million. That’s up from an official $136 million for 2017 […]
Harper Reports Strong Holiday Quarter
HarperCollins’ parent company News Corp. reported fiscal second quarter sales, through December, with the publisher registering “record revenue and segment EBITDA in the quarter.” Sales of $496 million were $27 million higher than a year ago, up 6 percent — and on a comparable basis improved even more, since the company said the new revenue recognition standards lowered revenues by $18 million. Foreign exchange cost the unit $7 million in the quarter. EBITDA of $88 million was $10 million higher than a year ago, up 13 percent. Digital sales comprised 17 percent of consumer revenues, rising 12 percent over a year […]
Lagardere Publishing Reports Good Finish, But Slight Decline for 2018
Lagardere Publishing reported fourth quarter and full-year sales results on Thursday (and, in the European tradition, will not report earnings and complete 2018 details until March). Fourth quarter publishing sales of €645 million were €21 million higher than a year ago, with €10 million of that gain coming from recent acquisitions (Worthy Publishing, Kyle Cathie, Jessica Kingsley and Summersdale). But that was not enough to avoid a decline in full year sales, at €2.252 billion, €37 million lower than a year ago. Acquisitions added €30 million during the year, but foreign exchange — “mainly” a softening US dollar — reduced […]
Pearson’s January Trading Report: “There Is Still Much to Do”
Pearson issued their traditional January “trading report,” with highlight data in advance of a full annual report on February 22. It brings familiar news regarding 2018 performance: The company remains adept at cutting costs, but not yet at increasing revenue, as the declining US higher ed market continues to weigh on their prospects. US higher ed courseware is expected to be down 5 percent year on year, a greater decline than expected by analysts. Pearson expects that trend will continue through 2019 as the long digital transformation continues: “Expect US HECW revenue to be zero to down 5% as underlying […]
Scholastic Q2 Results Flat, with Continued Trade Growth
Scholastic reported Q2 results for the period ending November 30, 2018, again showing strong results in children’s trade books, which is a modest part of their overall sales, which were up slightly overall. Second quarter revenue was $604.7 million, an increase of 1 percent compared to $598.3 million in the second quarter of 2018 – despite a negative affect from the new ASC 606 revenue recognition guidelines. The new accounting rules lowered revenues by $10.8 million in the quarter, whereas in the first quarter the rules changes had added $9.3 million to sales. Adjusted EBITDA was $123.2 million for the […]