Adult sales rise makes up for loss of Harry
Aug 30 2008 by Iain Laing, The Journal
PUBLISHER Bloomsbury yesterday said profits rose by a third after its best ever adult sales performance made up for the departure of Harry Potter.
Khaled Hosseini’s best-sellers The Kite Runner and A Thousand Splendid Suns, which have sold more than four million copies, underpinned a 34% rise in adult sales to £20.5m during the first half this year.
Other big hits during the period included Sally Brampton’s Shoot the Damn Dog and The Suspicions of Mr Whicher by Kate Summerscale.
The performance helped make up for a big fall in children’s sales, which were down 53% to £14m. The division was up against tough comparatives to last year, when the final Harry Potter instalment – Harry Potter and the Deathly Hallows – was released to millions of eager readers.
Bloomsbury’s overall revenues were down 18% to £42.1m during the period to June 30, but pre-tax profits rose 38% to £5.4m.
The group said the outlook for the rest of the year was also good with the biography of US billionaire and investment guru Warren Buffett due out September 29, a new book from Harry Potter author JK Rowling in December and Schott’s Almanac 2009.
Chief executive Nigel Newton said: “We have had a good first-half performance, particularly in the UK adult and specialist divisions.
“As well as enjoying notable success from long-running bestselling titles such as The Kite Runner, we are well positioned with strong publishing lists for the second half and beyond.”
Nearly a third of the group’s revenue during the period came from 10 authors, including Afghan-born Hosseini who now lives in the US.
His best-selling titles helped Bloomsbury’s German publishing arm, Berlin Verlag, enjoy a 78% rise in sales to £6.1m. Sales were up 10% at Bloomsbury USA, and 22% at its specialist arm, whose popular titles includes Don’ts for Husbands and Don’ts For Wives.
Strong cost controls also saw the firm’s administrative expenses fall 8% to £9.1m. Broker Investec Securities said Bloomsbury’s numbers were slightly better than expected, and demonstrated the firm had positive momentum.
Analyst Steve Liechti said: “The outlook is positive, despite the economic slowdown and a good roster of authors launching in the second half. The business is also benefiting from a more aggressive approach to costs in preparation for life post-Harry Potter.”
