HarperCollins sales and profits down in 2023 fiscal year

In the US, HarperCollins’ sales were down 10% in the 12 months to 30 June compared to the same period the previous year, while profits were down 45%.

Parent company News Corp’s full year results show the publisher’s revenue for the period totalled US$2 billion (A$2.9b), down from US$2.2 billion (A$3.4b). EBITDA (earnings before interest, taxes, depreciation and amortisation) fell to US$167 million (A$257m) from US$306 million (A$471m).

News Corp attributed the decline in sales to lower consumer demand industry-wide, a weak frontlist performance which contributed to higher returns, and Amazon’s ‘reset of its inventory levels and rightsizing of its warehouse footprint’. Profits were affected by the drop in sales, as well as higher manufacturing, freight and distribution costs. News Corp said it expects these supply chain challenges and inventory and inflationary pressures ‘to continue to impact the business in the near term, but are expected to moderate in fiscal 2024’.

In an interview with Publishers Weekly, CEO Brian Murray said that while results were down in North America, they were up in the UK, Spain, Germany, Brazil, and India. ‘North America had the biggest pandemic bubble and it had the biggest burst,’ Murray said. Most parts of the publisher’s North American business were down across the year, with the continued strength of audiobooks an exception. Overall digital sales fell 5% but they comprised 22% of HarperCollins revenue, up from 21% the previous year. Murray predicted audiobook sales will surpass ebooks in the ‘not-too-distant future’.

Category: International news