PRH earnings down 21% in first half of the year 

Penguin Random House’s (PRH) revenue was up but earnings were down in the first half of 2022, parent company Bertelsmann has reported.

While global revenue in the six months to 30 June rose 1% to €1.9 billion (A$2.8b), operating EBITDA (earnings before interest, taxes, depreciation and amortisation) fell 21% to €257 million (A$378m).

The earnings decline was due in part to inflationary cost pressures, CEO Markus Dohle said in a letter to staff, adding: ‘Worldwide, significant cost increases, from paper and production to distribution and freight, among others, won’t disappear in the foreseeable future.’

Dohle highlighted DK—which had its ‘strongest first six months globally since they became part of PRH’—and the Grupo Editorial businesses as particularly strong performers, while noting PRH’s ‘ever-expanding global audio business has become a strong growth pillar of our publishing efforts’.

‘The long-term shift to online sales has resulted in strong backlist growth and a technology- and data-driven transformation of our sales, marketing, and publicity instruments and tools,’ said Dohle, adding the company’s publishing line-up for the holiday season includes Michelle Obama’s The Light We Carry, which has a first print run of 2.75 million for North America alone.

Bertelsmann reported record revenue of €9.3 billion (A$13.7b), up 7% on the previous year.

Category: International news