Comparisons with last year’s Stephenie Meyer sales juggernaut continued to impact results for Lagardere Publishing in general and Hachette Book Group in particular. For the first six months of 2011, sales for Lagardere Publishing fell 7.7%, to 900 million euros, and EBIT (earnings before interest and taxes) dropped 29.7% to 71 million euros. In addition to strong sales of Meyer in last year’s six month period, currency fluctuations hurt sales; excluding the impact of exchange rates, revenue was down 6.0%.
In the U.S. Lagardere reported that sales were off 18%, but if Meyer sales are excluded sales were flat. E-book sales grew 115% in the U.S. and accounted for 20% of Hachette Book Group’s sales in the period, while sales of all digital content represented 21% of revenue. While digital sales jumped at HBG, the publisher’s overall financial performance was negatively impacted by the Borders bankruptcy and other challenges in the retail market.
E-book sales accounted for 5% of total Lagardere Publishing revenue (8% in the U.K.) in the six-month period and the company noted that it is using the agency model to sell e-books in all countries. In reviewing its global operations, Lagardere said that in France, after a sluggish start, sales improved in May and June and finished slightly down for the period. General Literature, Larousse and Education segments had good performances. In the U.K. sales were down 8%, although they showed improvement in June. And like the U.S., if Meyer’s Twilight books are excluded sales were flat. Sales in Spain and Latin America were even with 2010.
Meyer comparisons are much easier in the second half of 2011 and Lagardere expects sales and earnings to improve in the remainder of the year.
