S&S Third Quarter Up

S&S Third Quarter Up

Total revenue rose 9% in the third quarter at Simon & Schuster, to $214.2 million, and operating profit increased 6%, to $21.6 million. Renewed interest in the blockbuster The Secret and shipments of Become a Better You drove the gains. Sales were reported to be up across all of S&S’s divisions. For the first nine months of the year, S&S sales rose 16%, to $643.8 million, and operating profit soared 90%, to $61.1 million.

Results Mixed At Harlequin

Total revenue at Harlequin fell 2.7% in the third quarter ended September 30, to C$115.7 million ($122 million), although operating profits increased 12.5%, to C$16.2 million ($17.2 million). Excluding currency fluctuations, revenue was up modestly. Harlequin’s North American retail group had a slight sales increase driven by higher prices on some series lines, which offset a decline in units sold. In the direct-to-consumer segment, revenue fell.

For the first nine months of the year, revenue was up 1.2%, to C$356.1 million, and profits increased 20.6%, to C$47.9 million.

Second-Qtr. Profits for Indigo

Indigo Books & Music Inc. reported that net earnings for the second quarter ended September 29 increased to C$3.3 million ($3.5 million), compared to a loss of C$1.0 million in the same quarter a year earlier, on revenues of C$209.2 million ($219 million), an increase of 14.8%. Sales were driven by Harry Potter and the Deathly Hallows.

The company also said it will open eight new superstores over the next 18 months and will “significantly” expand its toy selection in some outlets.

Audible Cuts Loss

An increase of 63,000 new AudibleListener members spurred a 38% sales gain at Audible in the third period ended September 30, to $27.6 million. The company reported a net loss of $192,000, compared to $2.5 million in last year’s third quarter. The company projected that sales for the full year will increase between 28% to 30%.

Audio Editions Buys ABC License

Audio Editions has acquired the exclusive license for the use of the assets of the Audio Book Club, including ABC’s customer list. ABC had been part of MediaBay, which went bankrupt this summer. Audio Editions acquired the license from OTRE, a company formed by Michael Herrick, which bought the MediaBay assets at auction. The combined ABC/Audio Editions customer list has more than one million names.

Barricade in Chapter 11

Faced with rising costs from three libel suits, Barricade Books filed for bankruptcy last month in U.S. Bankruptcy Court for the Southern District of New York. Barricade said that the costs and distraction associated with fighting the separate lawsuits “have taken their toll on its business.” Barricade hopes that by filing for Chapter 11, it will have a “breathing spell” that will enable it to restructure its debts. According to the filing, Barricade has total assets of $422,020, compared to liabilities of $1.6 million. With the filing, however, the lawsuits have been stayed.

Wertz Leaves Abebooks

Boris Wertz, who joined Abebooks in 2002 following the acquisition of his company JustBooks by the used book online retailer, has stepped down as COO to form a new venture capital firm. His responsibilities will be assumed by Laura-Lea Berna, Shaun Jamieson and Thomas Nicol in a newly formed senior management team. Wertz remains on the Abe board.

Paolini Adds to Trilogy

Knopf announced last week that Christopher Paolini will add a fourth book to what was to have been his Inheritance Trilogy. The first two volumes in the series, Eragon and Eldest, have sold 12.5 million copies worldwide. The third book, which is still untitled, will pub on Sept. 23, 2008. A pub date and title for the fourth book have not been named.

RD in Outsourcing Deal

Reader’s Digest is outsourcing its promotional printing operations to Williams Lea, a worldwide print and information logistics company. Williams Lea will manage all aspects of producing RD’s direct-mail packages, while all creative functions involved with the promotions will remain at RD. The publisher estimates that it will save $130 million over the next three years. As part of the agreement, 100 RD employees have transferred to Williams Lea.