Quarto reported sales of $188 million for 2016, up $6 million from the year before, though operating profit fell to just $1.7 million, due to the $14.2 impairment charge related to the Books & Gifts Direct businesses in Australia and New Zealand that are being sold. Operating profit absent that division was $18.6 million, up $3 million. “Underlying” sales, without the $12.7 million added by the acquisitions of becker&mayer and Harvard Common Press during the year, also declined. (In particular, becker&mayer “exceeded management expectations by effectively becoming our sixth most profitable imprint this year.”) After tax, the company recorded a […]
Publishers
Penguin Random House Sales Down Almost 10 Percent In 2016
Bertelsmann reported full results for 2016 on Tuesday morning, with sales at the Penguin Random House division falling 9.6 percent to €3,361 million (in line with the 10.7 percent decline they reported after the first six months of the year). Operating EBITDA was €537 million, compared to €557 million a year ago. (From here forward, we will refer to the PRH reporting division, which includes the separate Random House Germany, as PRH+, and will use PRH for just the Penguin Random House joint venture.) At Penguin Random House on its own, sales were €3,059 million, down €335 million, or 9.9 […]
Trade Sales Fall In Down Quarter for Scholastic
Scholastic reported lower sales and a higher seasonal loss for their fiscal third quarter, ending February 28, but the company said it “controlled costs effectively, protecting profits despite reduced sales in clubs.” Sales of $336 million were down by 8.2 percent ($30 million), on “lower revenues in book clubs and trade,” with an operating loss of $23.6 million — $7.2 million higher than a year ago. “Trade sales returned to more normal levels after an exceptional first half driven by new Harry Potter publishing,” the company said, though trade revenues were below the same point a year ago: At $49.2 million, trade […]
Lagardere Publishing Profit Rises, As HBG USA Sales Fall 4.2 Percent
Lagardere followed up their headline sales report for 2016 with fuller details, adding information on profits and other granular breakdowns. Group recurring EBIT came in at €395 million versus €378 million in 2015, and publishing EBIT of €208 million was up €10 million — comprising over half of the group’s profits. The release notes, “The increase results from three factors: profitability gains in the US underpinned by strict cost discipline; a good performance from Partworks in Japan and Spain; and the one-off impact of new titles such as Harry Potter and the Cursed Child and Fantastic Beasts in the UK, […]
Wiley’s Book Sales Continue to Fall
Wiley reported third quarter results on Tuesday morning, and the company continues to perform well in nearly every area and medium except for their oldest one: books. Companywide sales were flat at $436.5 million, with net income rising $14 million to $53 million in the period. They took a $9.1 million restructuring charge in the quarter “primarily related to the consolidation of facilities and severance provisions related to additional efficiency gains.” CEO Mark Allin noted that “publishing revenue showed a significant decline due to market weakness in books and reference material, particularly print.” Wiley’s book sales have been declining continuously […]
Pearson Takes £2.55 Billion Charge
Pearson reported full 2016 results on Friday morning in London, announcing an impairment charge to North American goodwill against their declining higher education courseware market of £2,548 million. While the company said that in 2017 “early trading is in line with expectations,” they neglected to mention the big charge when they reduced their expectations in mid-January and warned investors about further restructuring on the way. In addition to the planned sale of their 47 percent share in Penguin Random House, the company said they will “explore a potential partnership for our English language learning business Wall Street English and the […]