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Hachette UK revenue grew by 9.7% in the first quarter of 2023, according to the latest financial update from parent company Lagardère, which states “revenue grew sharply in a stable market.”
The report says the increase reflects an "upbeat start" to 2023, particularly in the Adult Trade segment and the digital book publisher Bookouture. Full figures for Hachette UK were not broken out. Lagardère’s full-year financial results for 2022 were released in February and saw Hachette UK grow 3.4% in a slightly declining market.
David Shelley, c.e.o of Hachette UK, told The Bookseller: "We have had an excellent Q1, with 9.7% revenue growth. Little, Brown and Bookouture have had an exceptional start to the year, with The Housemaid’s Secret by Freida McFadden being Bookouture’s fastest-selling title of all time. Bookouture has more than trebled in turnover over the past five years, with sales continuing to rise sharply. It has also been a great Q1 for recent acquisitions Welbeck and Paperblanks, with Paperblanks enjoying all-time record sales in the period and Paul McKenna’s Freedom from Anxiety (Welbeck) selling extremely well.
"We’ve had four Sunday Times number 1s and 95 Sunday Times chart appearances in Q1, up from 68 in the same period last year, including Fast 800 Keto Recipe Book by Clare Bailey and Kathryn Bruton (Octopus); Verity by Colleen Hoover (Little, Brown); Sparring Partners by John Grisham (Hodder & Stoughton); Murder Before Evensong by Richard Coles (Orion); 1989 by Val McDermid (Little, Brown); and Thrown by Sara Cox (Hodder).
"Changing the Story continues to be a strategic focus for us as we try to ensure that the books we publish and the teams that acquire and work on them better mirror the consumers we serve. To this end, our initiative for new and underrepresented writers is developing every year with the Future Bookshelf and we are also proud to have launched the next Mo Siewcharran Prize, now in its third year. We continue to look for meaningful ways to create a workplace where everyone has the opportunity to thrive, and initiatives include the launch of our neurodiversity policy created in collaboration with our employee-run Accessibility network and our Diverse Future Leaders mutual mentoring programme which goes from strength to strength in its seventh year."
In the US, revenue was down in the first three months of 2023 by 11% on the back of a lighter publication schedule than 2022 and in a sluggish book market.
Hachette Book Group c.e.o Michael Pietsch said of the US performance: “HBG’s revenue for the quarter declined, reflecting a generally softer market especially for hardcovers and a comparison to an ebullient Q1 in 2022 that included the launch of Dolly Parton and James Patterson’s Run, Rose, Run. Hachette Audio was a standout in the quarter with increased sales across frontlist and backlist offerings, and three Audie Awards.”
For Lagardère publishing overall, first-quarter revenue totalled €570m (£502m), up 3% as reported and 1% like-for-like, a difference the organisation said was “primarily attributable to a €12 million positive scope effect linked chiefly to the acquisition of Welbeck Publishing Group and Paperblanks."
E-books accounted for 8.2% of total Lagardère Publishing revenue in first-quarter 2023, versus 8.1% in first-quarter 2022, while digital audiobooks represented 5.2% of revenue compared to 4.8% in the same period last year.
In total, revenue for the Lagardère group climbed sharply over the first three months of 2023 to €1,675m (£1,474m), up 28.4% as reported and up 24.4% like for like. Arnaud Lagardère, chairman and chief executive of Lagardère, said: "We maintained our remarkable momentum in early-year trading. Our two core businesses delivered solid performances, with Lagardère Travel Retail registering strong growth and Lagardère Publishing continuing to advance.”