Scholastic reports gains in revenue

In the US, Scholastic has reported a 2.3% revenue growth to US$1.67bn (A$2.23bn), excluding the negative impact of foreign exchange, for the year ending 31 May 2016, reports Publishers Weekly. Earnings from operations rose 183.9% from US$15.5m (A$20.7m) in 2015 to US$44m (A$58.9m) in fiscal 2016. Net income for 2016 was US$40.5m (A$54.2m), down from US$294.6m (A$394.1m) the prior year, which had spiked due to a one-time gain of US$279.1m (A$373.5m) on the sale of Scholastic’s educational technology division to Houghton Mifflin Harcourt. Scholastic’s children’s book publishing and distribution revenue rose by 4.6%, led by an 13.8% gain in the trade unit driven by the ‘strength of core frontlist titles’ and ‘Harry Potter’ sales. Sales through Scholastic’s book clubs fell 1.8% to US$270.4m (A$361.8m), while book fairs rose 4.6% to US$520.4m (A$696.4m). The educational division also posted a growth of 8.4% in revenue, rising to US$298.1m (A$398.9m). Unfavourable exchange rates impacted revenue from international divisions, falling to US$372.2m (A$498m) from US$401.2m (A$536.9m) in the previous year, and shaving US$43.2m (A$57.8m) from reported sales. Looking ahead to fiscal 2017, Scholastic chairman and CEO Dick Robsinson said he expected to see double-digit growth for the trade unit in the next year, and for book club and fair revenue to stay flat. Overall Scholastic CFO Maureen O’Connell said the company expects earnings to stay flat.

Category: International news Junior