Harpercollins Reports Higher Revenues

Newscorp reported financial results for their fiscal 2007 (ending June 30th) and while understandably much of the conversation on their conference call related to Dow Jones there was not one reference to Harpercollins. (Transcript). At this stage it would be premature to read anything into this for a few reasons. Firstly, Harpercollins has done consistently well over the past several years. Revenues and profits are down recently but they are off the back of a few very strong years and in particular several strong titles. Secondly, there is a divestiture log-jam at NewsCorp as they look to sell Gemstar, some small TV stations and some of the community titles that came with Dow Jones.

Harpercollins reported revenues for the quarter of $295 million, a $39 million improvement over 2006. Full year revenues of $1,347 million were $35 million better than the prior year.

Operating Income results at Harpercollins were as follows from the press release:

HarperCollins reported fourth quarter operating income of $21 million, an improvement of $27 million versus the fourth quarter of fiscal 2006. Full year operating income of $159 million declined $8 million from prior year results that included strong sales of The Chronicles of Narnia by C.S. Lewis. Current quarter results were led by sales of The Dangerous Book for Boys by Conn and Hal Iggulden and The Reagan Diaries by Ronald Reagan. In addition to these titles, full year results included strong sales of Marley and Me by John Grogan, The Measure of a Man by Sidney Poitier and Michael Crichton's Next. During the fourth quarter, HarperCollins had 53 books on The New York Times bestseller list, including 8 titles that reached the number one spot, and for the full year HarperCollins had 128 books on The New York Times bestseller list, including 16 titles that reached the number one position.

Operating margin of 11.8% in 2007 declined almost 1 percentage point versus 2o06. No detail was given on the margin erosion.

PDF of the earnings report is here.