HarperCollins' global revenue up 8% in first quarter

HarperCollins’ global revenues grew 8% to $525m (£430m) in the three months to 30th September 2023, compared with the same period last year, primarily driven by the increase in physical book sales and improved returns in the US resulting from “the absence of the impact of Amazon’s reset of its inventory levels and rightsizing of its warehouse footprint in the prior year”, the publisher said.

Figures from parent firm News Corp showed earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 67% to $65m (£53m) from $39m (£32m). The publisher said this was also primarily driven by higher revenues as well as lower manufacturing costs, "primarily due to product mix, and lower freight and distribution costs as supply chain challenges and inventory and inflationary pressures have begun to ease, partly offset by higher employee costs".

The first quarter results mark a bounceback for the publisher’s fortunes after global revenues dropped by 10% in the financial year ending 30th June, with profits down 45%.

However, 2023 EBITDA for the quarter is still lower than 2021’s $85m (£70m); 2021 revenues for the period were also higher at $546m (£447m). UK results were not broken out.

News Corp said key titles in the quarter included Tom Lake by Ann Patchett (published by Bloomsbury in the UK), Demon Copperhead by Barbara Kingsolver (published by Faber in the UK) and The Collector by Daniel Silva.

Digital sales increased 3% compared to the prior year and represented 22% of consumer revenues for the quarter compared to 23% in the prior year. Backlist sales represented approximately 61% of total revenues in the quarter compared to 65% in the prior year.