HC Sales Up, Profits Flat
Total sales at HarperCollins rose 3.8% in the third quarter ended March 31, to $302 million, while operating income held even at $29 million. The children's division had a strong period, with sales up 50% and profits ahead 500%. Friedman attributed the flat profit performance mainly to softness in the CBA market, and said that under new CEO Moe Girkins all aspects of HC's Zondervan subsidiary are under review.
With gains in HC's two most recent quarters, the company has just about overcome a bad first quarter. For the nine-month period, sales are down 1.3%, to $1.04 billion, while operating income is off 4.3% to $132 million.
Hachette India Launched
Hachette Book Publishing India, a subsidiary of Hachette Livre UK, released its first two titles last week and plans to publish between 20 and 25 titles by the end of 2008. The unit, headed by Thomas Abraham, will focus on the sales and marketing of Hachette titles from around the world before starting its own local list in early 2009.
Hachette Up
First-quarter revenue at Hachette Livre rose 0.5%, to 413.3 million euros ($636 million), with results hurt by the weak dollar. Excluding currency fluctuations, sales were ahead 2.4%. Hachette Book Group USA had another strong quarter, led by sales of James Patterson's Maximum Ride series and Stephenie Meyer titles. The company also announced it is expanding its Orbit imprint.
Results Off At Marvel
Sales in Marvel's publishing segment declined 4% in the first quarter, to $26.5 million, which the company attributed to a decline in comic book sales in the direct channel and lower advertising and custom sales, offset in part by continued strong growth in the mass market channel. Operating income declined 14%, to $9.9 million.
ABA Debriefs On New Direction
In preparation for the ABA's announcement of its new initiative at the BEA Celebration of Bookselling event, the organization has hosted nine regional forums called “Bookselling at the Tipping Point.” At the concluding forum, held last week with NEIBA in New Hampshire, ABA COO Oren Teicher said now is the time for the independents to rebound. “There is a moment in 2008 and 2009 that now works to our advantage. There's wind behind our sail,”Teicher said, despite the gloomy numbers. (The ABA has seen a drop in membership from a high of 4,400 to its current total of 1,800.) Part of the ABA's new initiative entails overhauling the Book Sense program (and its Web site)—soon, stores will use their own names as the URL for their individual sites.
Media Coalition Sues Indiana
The Media Coalition filed a lawsuit last week in Indianapolis federal district court challenging a new Indiana law that the organization contends infringes on the First Amendment rights of book, music and video stores. The law requires any retailer that creates a new establishment or relocates after the law's effective date (July 1) and sells or intends to sell “sexually explicit” material to register with the state as an adult retailer and pay a $250 fee. The suit is asking the court to declare the law unconstitutional.
Obituary: Charles Ellis
Charles Ellis, who served as president and CEO of John Wiley & Sons from 1990 to 1998, died May 4. He was 72. Ellis joined Wiley in 1988 after serving in executive roles at Pergamon Press, D.C. Heath and Elsevier Science Publishing Company. He played a key role in returning Wiley to profitability and expanding its global operations. In addition to leading Wiley, Ellis was active in industry organizations and served as chair of the AAP from 1992 to 1994. In lieu of flowers, donations to World Education Inc., 44 Farnsworth St., Boston, Mass. 02210 (wei@worlded.org) are requested.
