Potter publisher sales boost
Sep 19 2007 by Iain Laing, The Journal
HARRY Potter publisher Bloomsbury has said it is “back on track“ after it enjoyed a strong run of best-selling hits.
The group, which issued a profits warning in December, said it had seen one of the most sustained periods of best-sellers between April and June, boosted by hits such as A Thousand Splendid Suns by Khaled Hosseini and export orders for the final Harry Potter book.
However, with the magic of Harry Potter and the Deathly Hallows not set to benefit the group until later in the year, pre-tax profits came in 8.5% lower at £3.9m for the six months to June 30, despite a 36.5% leap in revenues to £51.4m.
Chairman Nigel Newton said: “This is a strong set of results which puts us back on track following last year’s profits warning.”
The group said it was set to benefit from a “very strong” publishing programme for the second half of the year, including Divisadero by The English Patient author Michael Ondaatje, a first novel from Sophie Dahl and new releases from Douglas Coupland and Nadine Gordimer.
Revenues during the first half received a boost from strong growth in export orders for JK Rowling’s final Harry Potter instalment, with strong sales set to lift profits for the full year.
However, margins slipped due to royalty costs for the title, while the firm also upped marketing and distribution spending to support the overseas release of the wizard’s last adventure.
Bloomsbury did not provide an update on sales of the title post its release day on July 21. The group said it had seen a “remarkable” six-week period in May and June with the release of David Kynaston’s Austerity Britain: 1945-1951 and David Dimbleby’s How We Built Britain.
