HarperCollins global revenue up 10%; profits hit by higher costs

HarperCollins global revenue grew 10% in the financial year ending 30 June.

Parent company News Corp reported the publisher’s full year revenue was up US$206 million (A$296m) to US$2.2bn (A$3.1bn) from US$2bn (A$2.8bn) the previous year—helped by a US$149 million (A$213m) contribution from the May 2021 purchase of the Houghton Mifflin Harcourt trade group.

Despite the revenue gain, EBITDA (earnings before interest, taxes, depreciation and amortisation) grew just 1%, up US$3 million (A$4.3m) to US$306 million (A$438m), with profitability affected by higher manufacturing and freight costs, ongoing supply-chain issues and inflationary pressures.

Revenue growth was attributed to strong book sales in the UK, and bestselling frontlist titles in the US, including Twelve and a Half (Gary Vaynerchuk), The Storyteller (Dave Grohl), Pioneer Woman Cooks: Super Easy! (Ree Drummond) and The Stranger in the Lifeboat (Mitch Albom).

Digital sales grew 4%, with the growth of downloadable audiobook sales partially offset by lower ebook sales. Digital sales represented 21% of consumer revenues for the year.

In a conference call, News Corp CEO Robert Thomson predicted that the Amazon Prime release next month of the Rings of Power will result in a huge sales boost for the ‘Lord of the Rings’ books on which it is based, reported Publishers Weekly.

The series, Thomson said, ‘is going to have a profound impact on HarperCollins’ performance, and the related publicity will no doubt stimulate sales’. ‘We’re not in a position to give you an accurate forecast for the future, but it is fair to say it’s going to be a significant moment for HarperCollins in coming months,’ said Thomson.

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