Harlequin’s parent company Torstar reported that the publishing unit had fourth quarter sales of $120 million (CA), down two percent from last year, with EBITDA falling more sharply to $18.3 million, million, down 17 percent compared to $21.3 million a year ago. They say the overall drop was largely due to a weaker US economy, which caused fewer print books to be sold, as well as a more marked shift from print to digital books. To that end, digital revenues were up $5.5 million in the fourth quarter, “reflecting the strong growth of the e-book market including the positive impact […]
Finance
Briefs: HMV Warns It May Violate Banking Covenants; Debts Owed to REDGroup Creditors; Lewis Sued for Defamation by Asset Manager; and More
As speculation mounts over whether minority stakeholder Alexander Mamut will buy Waterstone’s, the chain’s parent company HMV warned investors this morning that it expects to violate banking covenants as a result of full-year profits falling below expectations. While HMV said it was in talks with lenders to amend its credit loan agreements, which remain available, chief executive Simon Fox admitted in a statement that “trading conditions remain tough, reflecting a difficult consumer environment as well as the changing markets in which we operate.” He added that HMV “is adapting quickly to respond to these external factors, and we are confident […]
Pearson Freezes Libyan Government’s Minority Stake
In its earnings call yesterday Pearson admitted it was “uncomfortable” with the Libyan Investment Authority being its fifth-largest shareholder. Today the company announced it will freeze the LIA’s stake, valued at 3 percent last June but now at approximately 3.27 percent, or 26,572,179 shares. Pearson states that, per legal advice, “under The Libya (Financial Sanctions) Order 2011 (SI 2011 No. 548), Pearson considers that the ordinary shares in the company which are held by or on behalf of the LIA are subject to the Order and are therefore effectively frozen.” They have since informed the LIA and its nominees that […]
Bookselling: Waterstone’s Sales Talk; Foyles on the Move; Nontraditional Outlets; and More
Russian billionaire Alexander Mamut, who has increased his stake in Waterstone’s to more than 6 percent over the past few weeks, is now reportedly in talks with the company to buy the chain outright in a joint bid with founder Tim Waterstone. Mamut has hired Credit Suisse to assist in the potential bid. ThisIsMoney.co.uk Foyles will move its flagship space from its current home on 113-119 Charing Cross Road, where it has been since 1906, to a new store down the street sometime in 2013. The nearly 75,000 square foot space, almost double the present location, was bought by Foyle […]
Four Publishers On Borders Creditors Committee; Real Estate Manager Expects Additional Stores to be Closed
The official committee of unsecured Borders creditors was formed yesterday, comprising representatives from Penguin, HarperCollins, Random House and Perseus, along with Sony Music, GGP, and Simon Property Group. Separately, Chain Store Age has an interesting interview with Andy Graiser, co-president of DJM Realty, which is marketing the leases on the stores that Borders is liquidating. He says they have been “getting interest from all categories of retailers,” adding “Borders competitors aren’t in the mix yet, but I’m sure they’ll be there.” Graiser believes that Borders will indeed exercise its option to close some additional stores beyond the 200 that are […]
At Barnes & Noble, Sales Rise, Profits Fall, Dividend Is Suspended and Shares Are Punished
Barnes & Noble’s third quarter results, reported this morning, show the trickiness of navigating this transitional retailing (and etailing) climate. Following their best holiday period in years, sales rose 7 percent and profits were within the company’s own guidance. Both measures were below analysts’ expectations, though, with profits down from a year ago, and the company is suspending its quarterly dividend of twenty-five cents per share. The dividend reduction was expected long ago, since the company is investing in its digital strategy and has financing the dividend through borrowings rather than earnings. But the combination of lower earnings and no […]