Sales up 7.3% at Hachette UK in 'very strong' first half

Hachette UK c.e.o. David Shelley has hailed a “very strong” performance in the six months to 30th June 2023, with revenue up 7.3% on the same period last year, while parent company Lagardère’s publishing arm saw a slight increase in revenue but a decline in profitability.  

The results were revealed in a half-year report by Lagardère, although full figures for Hachette UK were not broken out. Lagardère said the six-month UK performance was chiefly driven by the Adult Trade segment, with success in both the backlist, including titles of Ana Huang, and frontlist, with titles including Lauren Asher’s Final Offer and Colleen Hoover’s Too Late, as well as the release of Rebecca Yarros’ Fourth Wing, which was hugely popular on social media. 

Shelley said: “The first half of 2023 has been very strong for us with 7.3% revenue growth and impressive performances from across Hachette UK, especially Bookouture, Little, Brown, and our international divisions Hachette Australia and Hachette India. We’ve also seen excellent growth from Hachette UK Distribution, which is a testament to the team’s commitment to the continued delivery of industry-leading service levels.” 

“We’ve seen a 21% increase in Sunday Times chart listings with 210 appearances compared to 173 in first half of 2022 and fantastic sales for: Verity and Too Late by Colleen Hoover (Little, Brown); Things We Hide From the Light by Lucy Score (Hodder & Stoughton); Murder Before Evensong by Richard Coles (Orion); Ink Black Heart by Robert Galbraith (Little, Brown); Fairy Tale by Stephen King (Hodder & Stoughton); Twisted Love by Ana Huang (Little, Brown); A Heart Full of Headstones by Ian Rankin (Orion); The Marriage Portrait by Maggie O’Farrell (Headline); The Housemaid by Freida McFadden (Bookouture); and Fourth Wing by Rebecca Yarros (Little, Brown), which has had an astonishing start with sales increasing each week and 215,000 copies in print to date.” 

Shelley noted it “remains a challenging time in the Education sector but Hodder Education had a solid first half, growing UK market share and enjoying record export sales”. 

He added: “It’s been an energising time in the business overall, including our annual Changing the Story Festival, which is a day of events designed for all staff to actively engage in how our people and our publishing can better mirror the consumers we serve. To ensure we continue to remove barriers to accessing the industry, we have two virtual work experience schemes, one currently open for applications from students aged 15 years and above and Orion’s internship, which focuses on those returning to the workplace or considering a career change. Last month, we celebrated our inclusion in the Times Top 50 Employers for Gender Equality 2023 for the fourth year running.” 

Revenue at Lagardère’s publishing arm as a whole hit €1.25bn up 2.5% on a reported basis and 1.6% like-for-like. Lagardère said the publishing arm maintained strong trading momentum in a less dynamic market and the difference between reported and like-for-like revenue is mainly attributable to a €21m positive scope effect and a €9m negative currency effect. 

Earnings before interest and taxes (EBIT) at the publishing arm declined to €65m, down from €81m last year. This decline was attributed to inflationary pressures on labour and production costs, as well as to an increase in costs incurred on transformation projects in France. These effects were partly offset by higher selling prices and the impacts of operational efficiency plans, particularly in the United States. 

France saw 7% growth in publishing revenue “despite a more lacklustre market, and was supported by a denser publication schedule”.  

At Lagardère as a whole, group revenue totalled €3.7bn, up 19% on a like-for-like basis. Group recurring EBIT hit €141m, up from €107m last year. 

Arnaud Lagardère, chairman and chief executive officer of Lagardère SA, commented: “Our activity in the first six months of 2023 confirms the group’s robust upward trajectory, with revenue up 19% year on year – our ninth consecutive quarter of growth. Lagardère Travel Retail posted a very solid performance on the back of the strong rebound in air traffic, while Lagardère Publishing maintained elevated revenue levels, demonstrating its resilience amid a less buoyant publishing market. This positive dynamic demonstrates the relevance and strength of the group’s strategic model.”