Bloomsbury Reports

Commenting on his company's results and prospects Bloomsbury CEO, Nigel Newton, said:

“We have had a good first half performance, particularly, in the UK Adult and Specialist Divisions. As well as continuing to enjoy notable success from long-running bestselling titles such as The Kite Runner, we are also well positioned with strong publishing lists for the second half and beyond. We are now seeing the benefits of our focused strategy, which is positioning us well for the rest of the financial year and the longer term.”

Other points from the press release:

• Profit before investment income increased 6.1% to £3.5m (2007, £3.3m)
• Investment income increased to £1.9m (2007, £0.6m)
• Earnings per share increased 41.2% to 4.97 pence (2007, 3.52 pence)
• Interim dividend up 7.1% to 0.75p per share (2007, 0.70p)
• Strong list for second half including Alice Schroeder’s biography of Warren Buffet; The Snowball; Just Me by Sheila Hancock; The Guernsey Literary and Potato Peel Pie Society by Mary Ann Shaffer; and, on December 4, JK Rowling’s The Tales of Beedle The Bard
• Net cash balances increased by 13.0% to £53.8m (31 December 2007, £47.6m)
• Well positioned for further organic and acquisition-related growth
• Strongest ever first six months sales performance from the UK Adult trade division

Newton in further comments noted that:

The programme of digitising our entire English language catalogue has been completed. This will enable us to increase significantly the range of electronic products we can offer both to individual buyers and to resellers serving the library and institutional markets, where we have already made encouraging sales of e-book collections. Digitisation also enables us to make our titles more easily available as print on demand (“POD”), a particularly appropriate model for specialist publishing where a wide range of titles are sold in small numbers consistently over a long period of time. In addition to digitising the in-print backlist, we are engaged in an active process of digitising out of print titles in order to offer them POD and in a variety of electronic formats.

Bloomsbury intends to expand the academic part of its Specialist Publishing Division and a number of acquisitions under consideration. We have appointed Jonathan Glasspool as Managing Director of Bloomsbury Academic. The recent growth of the Methuen Drama list, many titles of which sell to higher education students and lecturers, illustrates how well Bloomsbury can reach the academic and higher education markets.

Our sharing of copyrights across the Atlantic and other initiatives have resulted in a considerable year-on-year improvement in the results of Bloomsbury USA, with sales growth of 10% and a 60% reduction in operating losses.

Lagardere Reports

Corporate owner of Hachette UK and Grand Central Publishing reported their first half results yesterday. Here are some relevant parts from their press release:

Lagardère Publishing– Net sales for the first half of 2008 were €908m, an increase of 1.3% on a reported basis and 4.5% on a like-for-like basis. The business achieved a respectable performance in the United States, the United Kingdom and Spain, but there was a further decline in Literature in France. Part-works were affected by a drop in French and Italian sales, partly offset by good performances in the United Kingdom and Japan.

EBIT before associates [amortization of goodwill] of €71m, unchanged from the 2007 first-half figure, with an improved operating performance canceled out by negative currency effects. Good contributions from the United Kingdom (other than in educational books) and from Education in Spain offset a decline in profits from General Literature in France and Part-works. The contribution from the United States rose by over 10%, driven by an excellent performance in Fiction/Non-Fiction.

OCLC's Copyright Registry

Earlier this summer at an industry conference OCLC 'announced' that they would begin work on a Registry of Copyright for published works. I had some involvement in this project last year and I am glad to see that they are formally announcing the launch of the registry. The ways and hows are covered by fellow traveller Peter Brantley:

I had a long talk with Bill Carney yesterday at OCLC; Bill is the "owner" of this product. Although OCLC is concerned about the sustainability of this service, I stressed the need for an open and free api that would permit use of the contents of the registry by any (machine) comer, providing at least essential information -- perhaps OCLC could offer payment tiers with fuller, more complete data, for example including rights-holder provided notes.Bill was definitely supportive of such an api, and is actively soliciting feedback from others about the registry's desired functionality. An api (of any sort) does not yet exist, but OCLC has discussed its need, and is giving it at least a modest priority (lagging, I believe, behind constructing the necessary authorization infrastructure for user-submitted write updates). If you wish to provide feedback to OCLC, it can be left at the OCLC CER website.

Read the whole post. (Unsure why I neglected to mention this before).

Michael's Gotta Gun

Was anyone else more than slightly taken aback to find out that Simon & Schuster Editor in Chief Michael Korda has an assault rifle? Buried in this silly promo NYT's piece on his upcoming book, author Peter Manson lets us all know we better call ahead before we show up at Michael's house:

Mr. Manso called the weapon “a literary affectation” that he bought legally, before a change in gun laws made it illegal to possess, after seeing one owned by Michael Korda, the longtime Simon & Schuster editor in chief, who edited Mr. Manso’s Brando biography. “Listen, Michael Korda had one, Hunter Thompson had one, I thought it would be cool,” Mr. Manso said.

I have to get me one of those "literary affectations." I could do some target shooting out the window of PND towers. This morning there may be several S&S employees thinking twice about that request for a raise.

The other thing amusing about this article (and it was pointless other than to let us know he is in the process of uncovering the dark under belly of corruption in Provincetown and writing a book about it) was that Manso has lived there on and off for 60 years and suddenly the 'corruption' is a surprise. He should come to Hoboken. There's enough here for several books.

On The (Internet) Radio Tonight

I have been invited to speak on web radio about the publishing industry and Personanondata - in 15mins! There is a call in feature so if you are inclined follow the instructions below:

The Interview starts at 8:30 EST (8/27). Call in to talk to me on the show by dialing 646-200-4071. The show is aired LIVE at http://www.blogtalkradio.com/Circle-Of-Seven and an active chat session is online. After the show is aired, it is available for download at http://www.blogtalkradio.com/Circle-Of-Seven. Take a look at http://www.cospradio.com/ to learn more about COSP Radio.

Borders 2Q Loss Improves

On their call this morning Border's management sounded far more confident and at-ease in contrast to previous calls over the past several quarters. In the current economic environment and given the rebuilding effort going on at Borders their results were encouraging. From the press release:

Borders reported results for the second quarter, ended Aug. 2, 2008 and reported a second quarter loss from continuing operations of $11.3 million or $0.19 per share, representing an improvement over the same period last year when Borders Group recorded a loss of $18.1 million or $0.31 per share.

Borders Group achieved second quarter consolidated sales from continuing operations of $749.2 million, a decrease of 6.9% over 2007. As stated, the second quarter loss from continuing operations improved to $11.3 million or $0.19 per share compared to $18.1 million or $0.31 per share a year ago. The improvement was due primarily to expense reductions, lower interest expense and a tax benefit. Excluding non-operating adjustments, the second quarter loss from continuing operations improved to $10.5 million or $0.18 per share from $12.1 million or $0.21 per share a year ago.

CEO George Jones indicated that the Borders rewards program now has 28mm members. It has been very successful and email programs have great 'open-rates' and integrating with Internet site is generating great customer response. They are becoming more sophisticated in how they use the data associated with how their rewards customers buy - they are not just sending e-mail blasts. Since July when the Internet store "really got going" they have generated $7mm in revenue. Jones also said that they are in process of implementing interactive kiosks in the stores and that these will integrate with internet site.

CFO Wilheim noted that they are "sitting in a very comfortable position" from a cash and debt perspective. Jones stated that they have significantly improved the financial position of the company with respect to both debt (balance sheet) and expense reduction. They feel very proud of what they have done and confident that at least their commitments over the next 6-12mths will not pose a problem to the operations of the company. The company has really attacked their operating expenses and also successfully reduced inventory carry by 14%. The inventory reduction was done by eliminating titles that sold 1 copy per year per store.

The results were released yesterday after the close and their share price was up 13% in after hours trading.

Amazon.com Buys Shelfari - Updated

Via Paid Content. Hot on the heels of their acquisition of ABE books, Amazon has purchased the rest of Shelfari. Amazon had invested in the company some two years ago and had hoped it would come to rival librarything in popularity. Interestingly, librarything now also counts Amazon as an investor in it thanks to the investment ABE made in librarything 3-4 years ago. It is likely that librarything owner Tim Spalding will negotiate with Amazon to buy back the share they now own (and I would assume there was a 'change of control' provision in his original deal with ABE). It will be interesting to see who he jumps into bed with next - if anyone.



Personanondata Bookstore

Universal Mccann Review of Social Networking Trends

Universal Mccann International Social Media Research Wave 3

View SlideShare presentation or Upload your own. (tags: socialmedia research)

MediaWeek (Vol 1, No 34):

TimeOut wants BBC out of Publishing (TOLine):

Tony Elliott, the owner of Time Out, the entertainment listings magazine, called for a break-up and sale of the BBC’s commercial division yesterday as he accused the corporation of overreaching itself with the £75 million acquisition of the Lonely Planet travel guides. The magazine proprietor said that Time Out, publisher of its own travel guides, could not compete with the BBC’s promotional muscle - and that the BBC should not publish books and magazines.

The TimesOnline profiles City Lights in San Francisco:

It was established in 1953 by poet and ‘beatnik’ Lawrence Ferlinghetti and Peter D. Martin to provide a progressive, all-paperback alternative to books available at the time. It’s where the Beat Generation laid their hats and where publishing and selling Allen Ginsberg’s Howl got Ferlinghetti and bookseller, Shigeyoshi Murao, arrested in 1957 on obscenity charges. Their victory in court guaranteed the sale of other previously banned books – including D. H. Lawrence’s Lady Chatterley’s Lover and Henry Miller’s Tropic of Cancer. (Three years later British readers achieved similar rights after the failed prosecution of Penguin for publishing Lady Chatterley’s Lover.)

Enid Blyton rocks and is the subject of a preview in TOL:

With its sense of adventure and advice on derring-do for juniors, The Dangerous Book for Boys was the sort of “how to” manual that could have been dreamt up by Enid Blyton, the creator of the Famous Five, the Secret Seven and a host of other dearly loved children’s characters. Now the inevitable has happened. Booksellers are eagerly awaiting the launch on September 4 of the Famous Five’s Adventure Survival Guide, a similar tome but with the bonus of a brand-new mystery starring the ginger-beer-loving youngsters.

For my librarian friends a comparison of JCR and Scopus Impact Factors: LINK

Impact factors for journals listed under the subject categories "ecology" and "environmental sciences" in the Journal Citation Reports database were calculated using citation data from the Scopus database. The journals were then ranked by their Scopus impact factor and compared to the ranked lists of the same journals derived from Journal Citations Reports. Although several titles varied significantly in impact factor and rank, the Journal Citation Reports and Scopus lists had a high degree of statistical similarity.

Common Sense contractual terms from Random House via BoingBoing:

Random House is asking some of its authors of young adult books to sign contracts with "morality clauses" that allow the publisher to take back your advance and cancel your book if you're caught doing anything that "damages your reputation as a person suitable to work with or be associated with children, and consequently the market for or value of the work is seriously diminished."

BusinessWeek ad topic pages NYT. NYTimes has been doing this for years. (NYT via Blogrunner). ExLibris was sold by one fund to another. PR Slow week....

Publishers Worry About Amazon

Mike Shatzkin and I were intereviewed for an article published by SNL/Kagan about Amazon.com's relationship with publishers in light of the Hachette UK situation, Booksurge and the Kindle.

Excerpt:

Mike Shatzkin, founder and CEO of the publishing advisory firm The Idea Logical Co., said in a June 26 interview with SNL Kagan that Amazon is likely not getting those titles from publishers for under $9.99 and is probably taking a loss on those books. But Shatzkin added that situation could change if Amazon succeeds in establishing the Kindle as the dominant e-book platform. "If the Kindle reaches a critical mass, Amazon will have the ability to tell publishers that if they want their books available on the Kindle, they will have to sell them to Amazon for $6 or less," Shatzkin said. "That's going to be pretty rough." One reason it is so hard for publishers to meet Amazon's demand for increasingly lower prices, Cairns said, is because they must continue to offer their authors competitive advances and royalty packages to ensure they get the best titles. "Particularly for the brandname authors, publishers have to pay a very high price for that content," Cairns said. "It would be difficult for publishers to go back to their authors and say 'Give me a better price for your books.'" As a result, when Amazon asks for steeper discounts on titles, publishers are left trying to maintain their margins in other ways — such as by putting their marketing and distribution expenses. "And in this day and age, many of the larger publishers have already sweated out as much expense out of those cost areas as they possibly can, so there's not very much room left at all for them to do that," Cairns said. "It's very tight."

B&N Reports: Operating in Soft Retail Environment

B&N reported slack sales typical of many retailers this morning and even excluding the huge impact of Harry Potter in the comparable quarter numbers were down versus last year. Here is their press statement:

Sales for the second quarter decreased 1.6% to $1.2 billion largely due to last year’s record sales of J.K. Rowling’s Harry Potter and the Deathly Hallows. Barnes & Noble store sales decreased 1.6% to $1.1 billion, with comparable store sales decreasing 4.7% for the quarter. Barnes & Noble.com sales were $99.8 million for the quarter, a 3.6% comparable sales increase. Excluding prior year sales of the Harry Potter book, comparable sales decreased 1.5% in stores and increased 13.9% online. Bestselling titles during the quarter included Stephenie Meyer’s Breaking Dawn, Randy Pausch’s The Last Lecture, Lauren Weisberger’s Chasing Harry Winston and David Wroblewski’s The Story of Edgar Sawtelle. Second quarter net earnings were $15.4 million or $0.27 per share. Included in second quarter net earnings was an after tax benefit of $0.12 per share, resulting from a more favorable physical inventory shortage rate than previously estimated and accrued. Excluding this benefit, second quarter net earnings were $0.15 per share, higher than guidance of $0.08 to $0.13 per share. Despite the softer sales environment, the company’s management of operating expenses and higher than forecasted gross margins enabled it to exceed its second quarter earnings per share guidance. Gross margin was stronger than expected due to greater utilization of the company’s distribution centers and a lower markdown rate.

Other points from the conference call:

• Last year for the same period comp store increase of 4.4% and online increase of 17.9% for a total sales increase of 7.6%
• This year 1.6% decrease versus last years 7.6%.
• Excluding Harry Potter effect same store sales declined 1.5% this quarter
• Opened 10 and and closed 4 B&N stores for 723 total. Continued to close Dalton stores for a total of 73.
• Sales at B&N.com were $99.8mm for the quarter up 3.6% on top of last years 17.9% increase. The company noted that excluding HP sales at B&N.com were up 13.9% and this quarter was the 7 straight quarter of increased sales.
• Gross margins were up 150 basis points as a result of less highly discounted HP books and an significant quarterly improvement in stock shrinkage. (after tax benefit of 12cents per share)
• Guidance: The company is lowering its full year comp sales to slightly below 1%. Keeping EPS at previously issued guidance based on improved financial performance.

The company may have got off easily on the question period. No one asked about the recent resignation of Marie Toulantis (CEO of B&N.com) especially in light of the continued performance gain. Riggio commented that internet sales "were clearly a bright spot in the quarter" and traffic to the site, conversions and sales are up. In addition, the company continues to improve the site and is experimenting with web only offers. Given this performance is there a risk factor introduced with the departure of Toulantis and if she was asked to leave what do they want to do differently given this track record of continued improvement? No one asked about the competitive threat from the launch of Borders.com which based on the following chart could be a factor.



Lastly (and thankfully) no asked about their decision not to go after Borders but someone did ask about thoughts on the Kindle which they deflected.

Social Recommendations

In Business Week, author Sarah Lacy has some suggestions for publishers on how to develop, market and sell books by taking advantage of Web 2.0 opportunities. This is only one of her five suggestions:

Create stars—don't just exploit existing ones.When an author is established, publishers have to do less to make a book sell. So bidding wars start. As a result, even some best-sellers aren't very profitable. Instead, publishers should take a page from the handbook of Gawker founder Nick Denton and create stars. Find micro-celebs with a voice, talent, a niche base of readers, and most important—enthusiasm. Then leverage the publisher's brand (and the techniques I advocate, of course) to blow them out. Require as part of the contract that the author blog, speak on panels, attend events. Give them incentives for delivering—say, though Web traffic of the number of followers they amass on Twitter. Sure, publishers would have to spend more on promotion. But because they're spending less on an advance—say, $50,000 for a lesser-known writer than the hundreds of thousands of dollars (or more) they'd spend on a star—they can afford the bigger promotional budget. "It's taken some time for publishers to recognize that a successful site is as
strong a 'platform' as a magazine, newspaper, or TV gig," says Patrick Mulligan,
my editor at Gotham.

Bertelsmann Interested in Reed Business

Reuters reports that Bertelsmann's magazine unit Gruner & Jahr maybe in the mix to acquire the RBI unit from Reed Elsevier. Reuters learned of the tip via a German newspaper. In the report, Reuters also notes that indications of interest for the RBI business unit have been received and offers range between £1.0bill and £1.25bill. If correct, this range appears to match Reeds initial expectations for the deal. Reuters expects final bids to be submitted in October. Followers of Bertelsman may recall they have created a sizable fund with some PE companies with the express view to make some large (or one very large) deal. They objective was to be able to participate in the bidding process for these large media deals and not be priced out by pure PE deals. As a case in point they were very interested in the Cengage auction last year and by some accounts came quite close.

Reuters

Melbourne, City of Literature

Sydneyites (namely my cousin) used to say the only good thing to come out of Melbourne was the Hume Hwy. Unfair and untrue and in reflection of its world status, the city has been named a City of Literature (The Age).

Three days before the opening of the Melbourne Writers Festival, UNESCO has named Melbourne as its second City of Literature. Edinburgh became the first in 2004. The United Nations' cultural arm responded to an ambitious bid by the State Government that has as its centrepiece the establishment of the Centre for Books and Ideas at the State Library of Victoria. Arts Minister Lynne Kosky said the decision was confirmation of the value of a lot of people who have been working in the literature industry - writers and publishers and those who support writing and publishing.

Melbourne is a great place and this is well deserved in my view. Thanks to my Australian stringer for the tip.

Another Obama Book Controversy

No doubt Chelsea Green publishing thought they had come up with a reasonable marketing concept when they agreed to POD their upcoming Obama title (Obama’s Challenge: America’s Economic Crisis and the Power of a Transformative Presidency) with Booksurge and offer Amazon a three week exclusive sales window. Whether this promotion had its genesis in an inefficient editorial and manufacturing process that failed to deliver what must be their single most important title in the company's history on a date that's been on the schedule for months, becomes immaterial when considered against the antipathy that has resulted. The small company has succeeded in upsetting both independents and B&N by giving Amazon this exclusive.

B&N has now cancelled their order for the non-POD version and will only sell the title on their web site via special order. Admittedly, my immediate reaction would have been much the same: Cancel the orders. On reflection however, why didn't B&N double the order and publicise that they would honor the discount coupons once the book hit the stores? Even better, offer a special discount on pre-orders. Secondly, surely the number of attendees at the convention who will actually purchase the book is small compared to the market spread of customers walking into B&N stores across the country.

The publicity surrounding this book may now have more to do with the B&N reaction (perhaps more so within the publishing community) but assuming the publicity and enthusiasm continues to grow for this book, B&N's reaction will seem increasingly ridiculous. With a little more perspective and strategic thinking B&N could have stolen a lot of the thunder from Amazon; that is, if it even existed before B&N made such a big deal about it. On a larger point, if this is how non-Amazon retailers react, how soon will it be before Amazon, encouraged by this reaction, can claim that their retailing competitors don't have the product spread they do. I don't think that is a vortex any retailer wants to be on the cusp of.

Unprecedented!

The Gossip Girl book is being packaged as part of a DVD release of the TV show. The NYTimes notes the 'unprecedented' twist on how 'publisher's hitch their wagons to Hollywood projects:

Now, however, the DVD set “Gossip Girl: The Complete First Season,” which goes on sale this week, includes a free electronic version of the original novel by Cecily von Ziegesar on which the show is based. But — OMG! — it is totally not a book that you read! It is, rather, an audio book narrated by Christina Ricci, with other bonus material like scenes that were not broadcast and “LOL: Gag Reel.” The three-hour abridgement of the novel, which Hachette Audio first released in CD format in 2003, can be transferred to an iPod. This collaboration, by Hachette Audio and Warner Home Video, which made the DVD, is an unprecedented twist on how publishers hitch their wagons to Hollywood projects. With films, publishers typically reprint a paperback with movie-poster artwork, and audio divisions similarly repackage audio books.

The article goes on to briefly discuss why audio books don't appeal to youngsters which would have been a far more interesting analysis than suggesting publisher's product development is dependent on ride-alongs with Hollywood.

First Chapters Grows in The UK

Dial a Book which owns First Chapters has announced the addition of a major UK partner in Gardners. DAB will be licencing all 210,000 first chapter files to Gardners for their use with their publishing and retail partners. From the press release:

Dial-A-Book Inc, the largest creator and distributor of book text excerpts in the United States and Gardners Books Ltd., the largest book wholesaler in the United Kingdom, have announced a joint book excerpt distribution program.

The excerpts of US books which Gardners will distribute in the UK and throughout the world contain full bibliographic data, tables of contents and five to nine pages on initial text.

"Gardners are pleased to bring this invaluable sample material, which has reviously only been available within the USA, to retailers, librarians and book buyers, through our Digital Warehouse. Giving professional book buyers in retail and libraries, and consumers buying on our customers retail websites, access to sample content prior to purchase will greatly enrich their buying decision." said Bob Jackson, Commercial Director of Gardners Books Ltd.

Stanley R. Greenfield, President of Dial-A-Book Inc. indicated that the extended distribution of this book data will means more widespread sales of US works in the global marketplace.

MediaWeek (Vol 1, No 33):

The NYTimes looks at The Daily Show's Jon Stewart. NYT. Gannett is the latest Newspaper to cut headcount. SFGate. A very interesting application of Anti-Span technology used to translate text. TimesOnline

Captchas are little boxes on web pages which show a squiggly set of letters and numbers that the user is required to transcribe correctly in order to register or enter the site. They were devised eight years ago as a way of preventing computers from setting up e-mail accounts automatically which could then be used to send out spam, but a clever tweak means they are now being used to transcribe newspapers dating from the nineteenth century and earlier. Instead of displaying a random collection of letters and numbers, the newly designed Captchas present the user with a word from an old manuscript that a computer, somewhere, is having trouble deciphering.

The Telegraph reports on a half dozen interested parties moping around the Reed Business Assets. And the Informa deal is still generating some interest and the Telegraph notes Blackstone's interest in perhaps joining an existing consortium. And more from Reuters and an earlier Telegraph report. Jemima Kiss at The Guardian reports on an interesting new application in the printing industry. "In the same way that you'd use Expedia to find flights from many airlines, you'd use our service to buy exactly the prints you need from any print provider on the network." It's never too late to write that book. From the Guardian. "A raunchy novel with a dauntless heroine has transformed the lives of a 93-year-old author and three of her friends who were living in nursing homes. Pushed by her daughter-in-law, who found the manuscript and couldn't put it down, Lorna Page has become one of the oldest debut writers on record, with equally unusual social results." We did so much for everyone but now they're all against us and we were always misunderstood. The world according to Mrs. Conrad Black. TimesOnline.

But if the rich and well-connected cannot get justice, what chance for anyone else — a question I asked in columns about the law long before I married Conrad. What chance for the orange jump-suited, marginalised young men I saw shuffling in front of the judge in Chicago, silent while their court-appointed attorneys negotiated their freedom away in that tight little legal world, where a client’s fate never disturbs the bonhomie between lawyers. If ostensibly privileged defendants like us can be baselessly smeared, wrongfully deprived, falsely accused, shamelessly persecuted, innocently convicted and grotesquely punished, it does n’t take much to figure out what happens to the vulnerable and the powerless: they land, finally, in the 8:45am courtroom parade that takes place all over “America the Free” — the country that “wins” 90% of cases and imprisons more people than any other in the world.

GB Gold Overflow

Just an unbelievable performance by the Great Britain team over the weekend. Four gold medals on both Saturday and Sunday has pushed us up to the heady heights of third on the medal table. We're running just ahead of Michael Phelps. And it's not over yet.

How good a Games has this been for Team GB? Well, a gold today will make this our most successful since 1920. The 11 collected so far matches our total in Sydney in 2000. We are well on course to make this our second best Olympics ever. BBC

Best of British: 1908 (London): 55 golds

1900 (Paris): 14 golds

1920 (Antwerp): 14 golds

2000 (Sydney): 11 golds

Random Searches

A curious search string delivered someone to my site today:

"if you have a felony conviction can you travel to the UK"

The answer to that cannot be found on this blog. Nor can I offer any guidance.