Operating profits at Harlequin jumped 25.5%, to C$35.5 million ($24 million), in the third quarter ended September 30, on a 4.8% increase in revenue, to C$165.7 million ($111 million).
Executives at Harlequin parent company Torstar said the growth in sales and earnings was driven by the success of the company's single title publishing program.
Sales in the North American retail segment, led by its single-title operation, were "very strong" in the quarter, executives said, and earnings were up by C$3.9 million over last year's third quarter. Harlequin had 20 titles hit the New York Times and USA Today bestseller lists in the period, one more than in last year's third quarter. Earnings in Harlequin's mail order group rose by C$1.2 million.
In its overseas operation, earnings were up C$1 million, with positive exchange rates offsetting lower local operating results. The softest results were in Germany and Japan, and some markets in South America were also weak.
Executives told analysts in a conference call that they "don't have a good feel" for how Harlequin will perform in the fourth quarter. While the publisher had a good third quarter, the uncertainty about consumer demand makes it difficult to forecast fourth-quarter results, the executives said. For the first nine months of the year, Harlequin's operating profits increased 15.8%, to C$88.4 million, on a sales gain of 1%, to C$615.7 million.
