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 […]
Publishers
Earnings Fall At Wiley, With New Restructuring Charge
Wiley reported fiscal second quarter earnings Wednesday morning (not expecting that financial markets would be closed in honor of the late President Bush). Sales of $449 million were down by $3 million, as operating income of $57.5 million was down $23.3 million. They took $10 million of restructuring charges in the quarter, $8.7 million of that for severance, “reflecting continued cost reduction actions across the business.” ($5.2 million of those charges were against corporate expenses; $1.4 million was for the publishing division.) Foreign exchange reduced sales by $8.7 million. In advance of the formal SEC filing, this time Wiley’s press […]
Orwell Licensing Agreements Boost Trade Sales $15 Million at HMH
Houghton Mifflin Harcourt reported Thursday its operating and financial results for the third quarter ended September 30. Sales were flat, at $516 million — stable compared to the dark days of Q3 2016. Though net income was down 5 percent, or $4 million, to $86 million, earnings were still ahead of analysts’ diminished expectations and the stock is up sharply Thursday morning on the relief. After trading down to all-time lows after the second quarter results, shares are up about 20 percent in the first hour. Trade sales, which were weak last quarter, recorded a significant one-time boost, up $15 million, […]
Lagardere Publishing “Retreated” As Expected, But HBG USA Gains
Lagardere Publishing reported third quarter results on Thursday for the period ending September 30. Sales of €607 million were down 6.1 percent compared to €646 a year ago (and a big €675 in 2016), due to an expected weakness in European educational sales. The lack of curriculum reform in France accounted for that division’s decline of (14.7 percent), with weak educational sales also weighing on sales in Spain/Latin America (down 8.2 percent), and the UK (down 6.7 percent). The UK trade division also had a “lighter release schedule.” But HBG USA had a “sparkling performance,” up 5.1 percent for the quarter, […]
Harper Has “Robust” Profit Gain On Modest Sales Boost
Sales gained at HarperCollins for the fifth consecutive quarter, rising $17 million to $418 in their fiscal first quarter. “Robust profit growth” saw EBITDA rise to $68 million in the period, up $20 million for a year ago. Sales gains would have been higher, but were “partially offset by $12 million of lower revenues as a result of the adoption of the new revenue recognition standard.” We explained that standard earlier in the year, in the context of how it lifts Penguin Random House’s ebook sales, but it applies broadly to “revenues from contracts with customers.” A HarperCollins spokesperson confirms […]
Bloomsbury Shows Modest Six Month Gains, Lead by Adult Trade
Bloomsbury announced half-year results for the period ended August 31, 2018, with overall revenue up 4.4 percent to £75.3 million, an increase of £3.2 million over the same period last year. Adjusted profit before tax — which excludes a major increase in exceptional costs in the period — was modest at £2.9 million, though up 13 percent from £2.5 million during the period last year. Adult trade was the big performer, with sales rising £2.9 million to £15.9 million, due in part to renewed interest in the late Anthony Bourdain’s Kitchen Confidential. Meanwhile, the bigger Children’s division declined £.6 million to £31.1 […]