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HarperCollins Reports Strong Sales Growth in Recent Quarter

HarperCollins experienced a notable uptick in sales during the quarter ending December 31, 2024, with combined print book, e-book, and digital audiobook sales leading to an 8% increase compared to the same period last year. Revenues reached $595 million, and EBITDA saw a significant rise of 19%, totaling $101 million, according to their parent company, News Corp.

The publisher reported that digital sales surged by 9% in the quarter, amounting to $120 million. E-book sales contributed to this increase with a 6% rise, while audiobooks went up by an impressive 13%. News Corp executives credited the entrance of Spotify into the audiobook sector as a pivotal factor behind this growth. CEO Robert Thomson noted that Spotify, alongside Audible, has influenced a shift in consumer habits that has had a positive impact on the audiobook market.

However, the momentum in audiobook sales comes with a cautionary note. Lavanya Chandrashekar, the newly appointed CFO of News Corp, mentioned that as Spotify has been providing audiobooks for more than a year, future sales comparisons will reflect Spotify’s established presence rather than generate fresh revenue growth.

In a broader context, Thomson highlighted a solid performance for HarperCollins in the U.K., fueled by several bestseller titles. The Christian publishing sector also thrived, bolstered by robust Bible sales. The U.S. trade market saw successes as well, particularly with the memoir of Cher and the continued strong sales of Wicked, which gained momentum following the film adaptation’s release. However, the impact of a recent AI agreement signed by HarperCollins in November was not discussed.

During the analysts’ conference call, the topic of tariffs did not arise. Thomson emphasized HarperCollins’ strong backlist performance, with backlist titles accounting for 61% of revenue in the latest quarter, up one percentage point from the previous year. He referred to the backlist as “a platform for future growth.”

Looking ahead to the first half of the fiscal year ending this June, HarperCollins reported a 21% increase in earnings, reaching $182 million, on the back of a 6% rise in sales to $1.41 billion. Chandrashekar cautioned analysts, indicating that while News Corp anticipates further profit improvements for the remainder of fiscal 2025, the growth rate may be “much more modest” due to challenging year-over-year comparisons, particularly following the surge in sales linked to the Bridgerton series coinciding with the launch of its third season on Netflix.

Source
www.publishersweekly.com