Lagardere reported fourth quarter results after the close of the market in Paris on Thursday, with publishing division sales of 619 million euros down 1.9 percent (or €12 million), “as expected,” since they published a new Asterix in France in the final quarter of 2015. Acquisitions, including Perseus, added €22 million in the quarter, while they calculated a negative €26 million foreign exchange effect. HBG USA sales were down 12.4 percent in the final quarter, “held back by a less intensive release schedule than in fourth-quarter 2015, despite further growth in audiobooks and distribution.” Full-year publishing sales were €2.264 billion […]
Publishers
Quarto to Sell Ailing Books & Gifts Direct; Peanuts Stake for Sale
After years of poor results from the Books & Gifts Direct business in Australia and New Zealand, Quarto announced preliminary agreement on a sale on that division, with the deal “anticipated to close in the coming weeks.” They are expected to receive a mere $1 million (Australian) in cash, plus $4.75 million “in interest-bearing loan notes which are repayable out of cash generated by the business.” Assuming that loan is repaid in full, Quarto will take a writedown of approximately $11 million (US). Otherwise, Quarto told investors they “expect to report profits in line with management expectations” for 2016. Good performance from the recently-acquired Harvard […]
Scholastic Gains On Smaller Potter Bump
Scholastic reported fiscal second quarter results Thursday morning, for the period through November 30, with another Harry Potter boost from Fantastic Beasts lifting sales, albeit less dramatically than the gains the previous quarter from HP and the Cursed Child. Sales of $623 million were up $21 million, or 3.5 percent, with operating profit of $111.4 million up $5.7 million. Trade publishing sales were $98.5 million — up $36.8 million “on the strength of Harry Potter publishing” (while in the previous quarter, Potter drove a $69.6 million gain). Strong trade sales helped make up for declines of $4.8 million in book fairs […]
Wiley Suffers Declining Book Sales and Special Charges
Wiley reported second quarter sales through October 31 on Wednesday morning, continuing the pattern from the first quarter of fiscal 2017. Sales of $425.6 million were down $7.8 million (or 2 percent) from a year ago, with a net loss of -$11.45 million (compared to a profit of $43.6 million a year ago). “Adjusted” net income — if you adjust out all of the bad things that actually happened during the quarter — rose slightly on a per share basis. Special charges included $48 million for losing on an unfavorable tax ruling in Germany; $6.8 million on their recurring restructuring […]
Pottermore Reports Another Big Loss, Still Promising Turnaround
A year ago JK Rowling’s representatives were insisting the worst was behind them after reporting a significant annual loss for Pottermore, citing “recording breaking sales in December 2015” — and now the turnaround story is being pitched again. They are “on the path to profitability” for the fiscal year ending March 2017, but as for the just-reported year ending March 2016 (Companies House filings in the UK have a long time lag), they lost money again. Sales did indeed rise significantly, to £15.1 million pounds, but the site still incurred a pre-tax loss of £4.9 million. In the prior year, […]
Potter and Education Lift Lagardere Publishing
Lagardere reported third quarter results, with the publishing division reporting “a strong quarter with double-digit growth,” based on a few gifts: They gained from publishing the Harry Potter play script in the UK and export territories, and from “the effects of curricular reform in France,” plus the unit continued to benefit from a strong dollar and the acquisition of the Perseus imprints. Perseus looks to have added €18 million in the quarter (after contributing €22 million in the second quarter), with the acquisition of Neon Play in the UK adding modestly to results as well. But the continuing decline in the British […]