Publishers

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 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 […]

CBS reported second quarter earnings on Monday afternoon and publisher Simon & Schuster built on a good first quarter with more gains, rebounding to a more usual second quarter performance. Sales of $206 million were up $19 million from a year ago, “led by growth in print book sales and digital audio sales,” with the additional sales lifting operating income by $2 million to $28 million. (In 2014 they did $211 million in the second quarter, dropping to $199 million in 2015 and $187 million in 2016.) Results were lifted by the Adams Media acquisition, though ceo Carolyn Reidy notes […]

Pearson announced results for the first half of the year and expanded on the details of their latest in a cycle of continuous restructuring, first announced in May. Another 3,000 employees will be eliminated over the next three years, “with a particular focus on managerial positions.” The company confirmed that it will spend £300 million of the proceeds from the sale of a portion of their stake in the Penguin Random House joint venture on a share buyback, and they set a new interim dividend of 5 pence per share (compared to 18 pence per share in 2016). Sales for the […]

Lagardere reported results for the first half of the year, with Lagardere Publishing, moving up modestly on the Perseus acquisition. Sales of €1.019 billion were up €49 million compared to a year ago, with Perseus contributing an added €18 million (the acquisition closed in spring 2016) and other acquisitions added another €6 million. The highlight was Hachette UK, where sales rose 10.2 percent, helped by the summer John Grisham release and “an additional billing week in the period,” with “strong profitability gains in the UK spurred by the success of the catalogue” also driving the gain in profits. Recurring ebit was […]

Scholastic reported fiscal fourth quarter 2017 sales through May 31 of $499.6 million, down $14.2 million from a year ago, on lower sales in children’s publishing and distribution and international. Operating income for the quarter was $64.2 million, up $5.8 million on increased education sales and lower costs. Children’s trade sales were $43.3 million for the quarter (down $2.4 million from a year ago), though for the full year trade sales were $307.9 million on last year’s new Harry Potter books, compared to $211.7 million in fiscal 2016. The Potter gain comprised all of the year’s sales increase and then […]