PRH saw 7% sales rise in 2023, but profits were flat

Penguin Random House recorded a 7% revenue rise worldwide for the full year 2023, to €4,532m (£3,886m), up from €4,223m in 2022. However profit dipped marginally by 0.3% to €664m (£569.4m), from €666m in 2022. 

Its performance came as parent company Bertelsmann saw revenues flat across its operations compared to 2022 at €20.2bn (£17.3bn).

PRH c.e.o. Nihar Malaviya said in a letter to staff: "Our revenues were up substantially, driven by many publishing successes—both frontlist and backlist—as well as by various mergers and acquisitions we made across our territories. At the heart of our success are our books. And while every book we publish contributes to our commercial and cultural success, one particular publication that we can be proud of globally is Spare by Prince Harry, which was the bestselling non-fiction book industry-wide in many of our countries. This was a truly global publication that only we at Penguin Random House can make happen."

Other bestsellers for the company around the world included Wifedom by Anna Funder, Murtagh by Christopher Paolini, Atlas by Lucinda Riley, and the latest book from Isabel Allende, El Viento Conoce Mi Nombre, he said.    

Malaviya said profits were at the same level as the previous year "due to ongoing increases in many of our costs". He commented: "We have taken many actions to combat these increases and to stabilise our cost structure in most of the countries in which we operate. I know that some of these actions were very difficult, and I would like to thank all of you for your hard work as you implemented these changes while continuing to focus on our books and authors during these times. All our initiatives put us on solid footing, and we are now in the best possible position we can be to continue investing in our authors and employees. I am confident about our collective future."

The PRH chief said the company has "a very clear strategy for creating the best publishing house for the next decade and century".

"Books are at the core of our strategy, and I am really excited about our incredible publishing line-up for 2024 and impressed by the creative ways in which teams are approaching the marketplace. I firmly believe that there are many different paths to success in publishing and that together we have created the best environment for various publishing homes and creative visions to thrive. We see this by our internal growth, as new imprints launch and existing imprints expand. Through your invaluable daily efforts, our publishing homes continues to attract and publish the best author talent, including such names as Javier Castillo, Kyo Maclear and Julie Morstad, Tommy Orange, Chanette Paul, Salman Rushdie, Vivek Shanbhag, Zadie Smith, Saša Stanišić, Amor Towles, Jeferson Tenório, Liane Moriarty, and Lisa Yee, names that are responsible for many of the past decades’ culture-defining and notable works. Every voice we publish offers readers entertainment, inspiration and a source of truth. By reflecting on past experiences and offering insight into new ones, books have the power to bring us together—a power I think the world needs more of."

A total of 10 publishers were acquired by PRH in 2023, including a majority stage in US publisher Sourcebooks, as well as Tulipan Verlag in Germany, Roca Editorial in Spain, Quadrille in the UK, Playaway and Callisto in the US, and Hay House in several countries. Malaviya said: "These publishers decided to join us because we respect—and encourage—their independence while providing them with the best resources and an incredible platform for their books to reach even more readers globally." 

Bertelsmann said that in a challenging economic environment, it had benefited from revenue growth in its book publishing, music and education businesses, but had seen declining revenues from TV advertising. Profits for 2023 rose over 25% despite flat sales, to €1.3bn, due in particular to profit from the sale of shares in the customer experience company Majorel in November 2023. Chairman and c.e.o. Thomas Rabe said: "We look back on a good financial year 2023."