HarperCollins global revenues remained flat for the first quarter of 2023 as currency fluctuations and supply-chain pressures continued to bite.
Figures from parent firm News Corp showed revenues were level at $515m (£411m), compared with the same period last year. The publisher said this was because higher sales of Christian Publishing titles were offset by the negative impact of foreign currency fluctuations.
Segment earnings before interest, taxes, depreciation and amortisation (EBITDA) for book publishing in the three months to 31st March 2023 decreased 9% to $61m (£49m) compared with $67m (£53m) the year before. This was primarily due to “higher manufacturing, freight and distribution costs related to ongoing supply-chain, inventory and inflationary pressures, partially offset by lower employee costs,” News Corp said. UK results were not broken out. The publisher said these pressures “are expected to continue to impact the business in the near term” and the company “has implemented price increases, begun to reduce headcount and continues to evaluate its cost base” to mitigate.
Digital sales at the publisher decreased by 3% compared with the corresponding period in 2022, driven by lower e-book sales. Digital sales represented approximately 23% of consumer revenues, which was in line with the corresponding period of fiscal 2022, and backlist sales represented approximately 60% of total revenues during the three months to 31st March 2023.
The impact of foreign currency fluctuations of the US dollar against local currencies resulted in a revenue decrease of $11m (£9m), or 2%, for the period, News Corp said.
