UK retailer WH Smith reported annual results through August 31. In line with the long-term trend for Smith, their growing travel store business added more sales than their slowly declining high street bookstore business lost. For the first time, travel is the larger segment, with sales of £624 million, versus high street sales of £610 million (down from £639 million a year ago, or 5 percent). High street “trading profits” (before unallocated costs, finance costs and taxation) were flat, at £62 million, though that was with another £12 million of cost savings. The company make clear that “over the next […]
Publishers
Scholastic Returns to Normal Sales, with Higher Loss
Scholastic reported fiscal first quarter sales through August 31, returning to a normal quarter after last year’s boost from the release of Harry Potter and the Cursed Child. Sales were $189 million — down from $283 million a year ago, but close to the $191 million in the same quarter two years ago. The company traditionally has a seasonal loss in the first quarter while school is out of session, though this time losses were heavier at $102 million — compared to $62.5 million last year, and $79.5 million the year before that. But the analyst still covering the stock […]
Same Story: Book Publishing Continues Decline At Wiley
Wiley reported fiscal first quarter sales on Friday, with sales of $411 million, up $7 million from a year ago, but lower operating income, at $14.5 million down from $43.8 million in 2016. The gap was attributable to $29 million of restructuring and related charges, from their “operational excellence initiatives.” Their book publishing business continues its steady decline: STM and professional publishing fell 10 percent to $63.6 million, as education publishing fell 17 percent to $45.7 million, for a combined decline of $16.3 million. Release
Penguin Random House Has Flat Sales, Better Profits
Bertelsmann reported results for the first half of the year, with sales at Penguin Random House (inclusive of the separate RH Germany, which they only break out in the annual report) just above flat, at €1.532 billion (€16 million higher than a year ago). Operating EBITDA of €206 million was €21 million higher than a year ago. But results at the midpoint of 2016 were significantly lower than the same period in 2015, when sales were €1.697 billion and EBITDA was €207 million, buoyed by the rising dollar. Currency exchange may be the most important factor the company does not discuss in the current […]
Soft Quarter Leaves Harper Sales Down for the Year
News Corp. reported fiscal fourth quarter 2017 earnings on Thursday afternoon, with HarperCollins recording sales of $407 million, down $26 million from a year ago (-6%). Of the decline, $19 million was simply because the same quarter a year ago comprised an extra week, and the company said negative foreign exchange cost another $8 million. They also cited “lower sales at the children’s division, which had bigger title releases in the prior year.” EBITDA for the quarter fell as well, at $39 million, compared to $50 million a year ago. In addition to the sales factors, the company said profits […]
Quarto In Talks with Buyer After Poor First Half
Quarto has effectively been in play since their profit warning about a month ago, which took the stock down close to 45 percent, and today the company acknowledged having “received an approach” from a buyer. Acknowledging that “discussions with the bidder are at an early stage” and could fail to go anywhere, the company says the offer price is “attractive and reflective of the inherent value of the business” — so presumably well above the current trading price. At the same time, however, the company announced results for the first half of the year that were weaker than expected, even […]