E-textbook sales surge at JS Group

The JS Group has reported a surge in e-textbook sales, with digital now accounting for 13% of the academic retailer’s book revenue.

E-textbooks have so far been slower to catch on in the academic market than the trade market, but the JS Group’s latest financial results suggest that this trend is shifting, with its digital textbook sales rising 1,090% and accounting for 13% of its book sales for the year June 2014-May 2015, from 0% the previous year.

The retailer, which includes the John Smiths academic bookselling chain, vends digital textbooks to university students through the Kortext platform. It did not reveal a unit figure for its digital sales, though.

The company has also seen a marked rise in sales through its website channel, up 18.7% and accounting for 24.5% of the company’s turnover in its 2014-15 financial year. Academic book sales were also up by 13.1%.

Despite the growth in books and digital and online sales, Peter Gray, the company’s c.e.o and chairman, said the Aspire bursary platform was the main driver of the company’s growth, with four more universities using the service in the period the accounts relate to.

Altogether, the JS Group’s revenues were up 2.7% to £40.66m, with operating profit up 25% to £0.336m. The group also generated £1.34m of cash from its operating activities.

Gray said: “I am delighted with our overall performance and by the significant progress we continue to make in the Higher Education market.  Our growth is based on our Aspire technology and platform and I am delighted that Aspire continues to be adopted by universities here in the UK and internationally.”

He added: “Add to that the growth in our e-book and e-commerce revenues and we have a great offer for universities and for students and a model that will deliver sustained growth.  Overall, the group remains in a strong position to not only participate from the changing landscape in our core markets but to be an agent for that change as we continue to invest in people and technology assets to support our growth strategy.”

It’s Botswana operation also performed strongly in that period, with sales up 30%, the company said, due to new contracts with universities there. While that boost did not involve e-textbook sales, Gray told The Bookseller digital sales were starting to take off in the country in this financial year. Gray added that company’s strategy was to expand further into international territories, though would not be drawn on which ones.

The company's legal arm Hammicks was the only one which saw a dip in the period of 7.7%, as customers continue to switch expenditure from print to online services. The division also saw an “expected” decline in the value of the contract with the Ministry of Justice but has “taken appropriate actions to reduce its cost base,” which included the decision to close the Hammicks shop on Fleet Street.

To counteract the decline in revenues, the company is investing in its technology assets and contract wins in the current year to position Hammicks to be a “market leading service provider to the sector.”