At Scholastic, revenue for the first quarter ended August 31 inched up 0.3%, to $191.2 million, over the first period of fiscal 2015. The net loss increased to $49.4 million from $34.1 million a year ago. The best performing unit was the children’s book publishing and distribution group, which had a 15% increase in revenue, to $68.1 million in the period.
Within the group, the trade segment led the way with sales up 22%, to $47.3 million. Scholastic pointed to a long list of titles that did well in the quarter, including the Harry Potter series and the updated Minecraft handbook series, plus strong fall frontlist titles such as Star Wars: Jedi Academy #3: The Phantom Bully; Wings of Fire Book 7: Winter Turning; and Captain Underpants and the Sensational Saga of Sir Stinks-A-Lot by Dav Pilkey. Strong book sales were partially offset by lower sales of animated programming in the trade group's media operations. Revenue at book fairs rose 8% and fell 4% at book clubs in the quarter, the smallest period for those businesses since schools are not in session.
In the education segment, revenue hit $50.0 million, an increase of 7%, compared to the prior year period. This increase was driven by higher sales of Scholastic's classroom books and literacy initiatives, including summer reading programs, as well as higher advertising revenues from consumer magazine custom and digital publishing business.
Revenue in the international segment revenue fell 14%, to $73.1 million, from $84.7 million in the prior year period, a decline of $11.6 million, or 14%, as a result of unfavorable foreign exchange translation due to a stronger U.S. dollar. Sales in local currencies were slightly ahead of the prior year period driven by a strong trade list in Australia and higher sales in the company's operations in India, Indonesia, Malaysia, and the Philippines.
In prepared remarks, Scholastic chairman Dick Robinson said the company performed about as expected. He noted that with the May divestiture of its education group, all of Scholastic’s operating groups are in “a unique position to offer customizable, comprehensive literacy solutions, including books for independent reading delivered through clubs and fairs, classroom magazines and instructional reading and writing programs, along with consulting and services for Professional Learning and Family and Community Engagement and Learning Supports, in tailored offerings to meet the specific needs of its customers."
