Growth in digital sales in the third quarter was enough to offset print declines giving Simon & Schuster a 1% increase in revenue to $220 million. OBIDA (Operating Income Before Depreciation & Amortization) rose 19%, to $38 million.
CEO Carolyn Reidy said sales in the adult group rose 3.5% led by A Stolen Life, a title that now has a combined 1.3 million print and digital copies in circulation. Sales in the children's group slowed in the quarter, but international sales increased 5%, driven by a 21% increase in the U.K.
Digital sales more than doubled in the quarter and now represent 17% of revenue. Reidy noted that without Borders, sales of physical books are as low as they have been in years. "There is pressure on retail," Reidy observed, though she said the new stores opening in former Borders locations, and elsewhere, will ease some of that pressure. Furthermore, Reidy added, S&S "has adjusted to the new environment" without Borders.
Reidy noted that the new My Sales tool introduced a few weeks ago has met with a very positive reception among authors and agents.
The fourth quarter has also gotten off to a good start led by Walter Isaacson's biography, Steve Jobs. Reidy said she found the strong hardcover performace of the book "heartening" since it suggests customers will still go to stores for the right book.
Looking ahead, Reidy said she is confident S&S has a lot of the right books for the fourth quarter, starting with Stephen King's newest, 11/22/63, which ships next week.
