Publishers

Joining the big wave of earnings reports was Pearson on Friday, with results for the first half of the year. Sales fell £131 million to £1.866 billion, down 7 percent overall (and down 11 percent on a currency neutral basis) — “primarily due to the expected declines in assessment revenues in the US and UK” — and income fell away, with operating profit from continuing operations of £15 million and a loss 1.3 pence per share. The latest of their continuing restructuring initiatives, given the innocuous-sound name of “simplification and change programs,” is said to be on pace, and they […]

Simon & Schuster’s parent company CBS reported second quarter sales after the close of the market on Thursday, with publishing revenues falling 6 percent to $187 million (down from $199 million a year ago). But operating income grew by $1 million, up to $26 million, “as the revenue decline was more than offset by lower production, selling, and inventory costs.” CEO Carolyn Reidy said the sales decline was “purely title related” in terms of the release schedule compared to a year ago. “We’ve got massive stuff coming” later this year, including anticipated books by Amy Schumer and Bruce Springsteen, Reidy […]

Lagardere reported results for the first half of the year on Thursday afternoon, with the book publishing group just above flat, recording sales of  €970 million (up €2 million) and flat EBIT at a relatively low €36 million for the period, even with the addition of the Perseus imprints. Acquired on April 1, those lines added sales of €22 million — but negative foreign exchange cost €18 million, primarily due to the decline in the British pound. Earnings for this period were €50 million euros in 2014, and €71 million euros in 2013. It appears that Lagardere Publishing paid a total of €89 million for Perseus, recorded […]

Scholastic reported sales for their fiscal fourth quarter, ending May 31, of  $514 million, up 5 percent (or $26 million) from a year ago, “reflecting higher sales in all of the company’s three segments – children’s book publishing and distribution, education, and international.” Operating income of $58.4 million was up from $33.5 million a year ago, though full-year earnings look to be below the guidance that was lowered a quarter ago, though free cash of $46.3 million was better than projected, “as a result of the timing of new investments.” But regular “one-time” charges continue, however; mostly non-cash charges of $12.7 million related to their headquarters renovation of its headquarters […]

Wiley reported fourth quarter and full fiscal year results on Tuesday morning, with final quarter sales falling $7 million, to $434 million, and sales for the year declining $95.5 million, to $1.727 billion. The same factors that held back fiscal 2016 results — foreign exchange losses due to the weak British pound, and continuing declines in book publishing, balanced out by gains from shifting to time-based journal subscription agreements — leave the company with guidance of “flat” sales and declining adjusted earnings per share, falling “by mid single-digits.” They expect “marginally lower operating income due to the continued book decline and investment […]