PRH revenue up, profit down in 2022

Penguin Random House’s revenue grew 5% in the 2022 financial year, however its profit was down 12% over the same period, according to parent company Bertelsmann’s financial report.

PRH revenue in 2022 totalled €4.2 billion (A$6.8b), up from €4 billion (A$6.5b) in 2021, while EBITDA fell from €755 million (A$1.2b) in 2021 to €666 million (A$1.1b) in 2022. ‘PRH reported an increase in revenues in 2022, driven by positive currency effects; the operating result declined owing to higher costs, including inflation, as well as reduced sales levels,’ Bertelsmann said. ‘Adjusted for exchange rate effects, revenues also softened, mainly due to normalisation of book markets.’

In a letter to staff, PRH CEO Nihar Malaviya said: ‘Over the course of the year … we collectively fell short of our financial targets’.

‘But despite operating in an overall challenging environment, especially with rising costs, we had numerous bright spots—countless successful publications around the world, continued growth of audiobooks globally, and reduction in return rates driven by our long-term investments in supply chain in many of our markets,’ wrote Malaviya.

Malaviya cited numerous ‘headwinds’ the company faces, including cost pressures and uneven retail demand. ‘Overcoming these challenges will require a constant vigilance on our costs as well as a focus on what you do best—publishing and selling books,’ said Malaviya. ‘We will continue to empower you with investments that support your work: book ideas and manuscripts that our publishers and editors champion, as well as advancing our capabilities in many areas, such as sales, marketing, metadata management, and supply chain, among others.’

Category: International news