HarperCollins followed up a strong quarter ended June 30, 2024, with more solid results in the quarter ended September 30, 2024. Revenue in the quarter increased 4%, to $525 million, compared to the prior year, parent company News Corp reported. EBITDA (earnings before interest, taxes, depreciation, and amortization) jumped 25%, to $81 million.
The sales increase was led by a 15% gain in digital sales, which saw sales of digital audiobooks jump 26% in the quarter, while e-book sales saw "renewed" growth, with sales up 7%, according to News Corp CEO Robert Thomson. Digital sales represented 25% of Consumer revenues for the quarter, the company added, compared to 22% in the prior year.
HarperCollins's big title in the quarter was Hillbilly Elegy by J.D. Vance, which had sales of about 1.5 million copies across all formats, Thomson said. Other trade titles that posted solid quarterly sales included A Death in Cornwall by Daniel Silva and The Au Pair Affair by Tessa Bailey. Bible sales, which were strong throughout the fiscal year ended June 30, 2024, had more gains in the latest quarter.
Other contributors to the improved results were lower book returns and a strong performance in the U.K., outgoing CFO Susan Panuccio said. Backlist sales represented approximately 64% of consumer revenue in the quarter, compared to 61% in the comparable quarter the year prior. The results also follow another year of workforce restructuring at the publisher, especially in its sales department.
Thomson said he expected the strong momentum HC has experienced in the last two quarters to continue into the fourth quarter. He also briefly addressed the rise of AI in his opening remarks, noting that, while News Corp is willing to license its content from such businesses as The Wall Street Journal to AI companies, it is also prepared to sue tech firms that violate copyright.
