Publishers

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 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 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 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 […]

Houghton Mifflin Harcourt continued their string of disappointing results on Thursday morning, reporting poor fourth quarter earnings. Net sales of $242 million were down $56 million (or 19 percent) from a year ago. The continuing trouble at their legacy basal and supplemental education business helped lead to an operating loss of $251 million, $174 million more in losses than a year ago. The company took a $139 million non-cash impairment charge, “the result of our strategic decision to emphasize our world-leading HMH brand over legacy brands such as Holt McDougal and various supplemental brands.” With the help of tax benefits, […]

Sales at Simon & Schuster fell to $209 million in the fourth quarter, down $24 million compared a year ago. (In 2014, the company had sales of $215 million in the quarter.) CBS said in their release the decline reflected “a difficult comparison with the fourth quarter of 2015, which included the release of a bestselling title by Stephen King. Profits remained strong, though, growing by $2 million to $36 million, as “lower production costs offset the decline in revenues.” CEO Carolyn Reidy confirmed that “the only real shortfall” during the quarter was in their adult division and not having […]