|Thomas Nelson key to HarperCollins earnings boost|
|Written by Jeremy Burns|
|Wednesday, 25 September 2013 07:58 AM EDT|
The acquisition of Thomas Nelson is the main driver of the 15% increase in revenue for HarperCollins in the fiscal year ending June 30. HarperCollins finalized the purchase of Nelson in July 2012.
Revenue and earnings for the publisher were $1.37 billion EBITDA (earnings before interest, taxes, depreciation and amortization), up from $1.19 billion EBITDA the previous fiscal year. This brings the company’s income nearly to pre-recession levels, as HarperCollins earned $1.39 billion in 2008.
While Thomas Nelson and the creation of the HarperCollins Christian umbrella – which also includes Zondervan, part of HarperCollins since 1988 – are cited as the primary drivers of increased revenue, the growth of e-books also played an important role. The publisher’s e-book sales accounted for 19% of revenue in the fourth quarter of fiscal year 2013, up from 16% the year before. Lower manufacturing costs from increased digital sales, as well as increased synergies in HarperCollins Christian division were also key components.
These gains were offset somewhat due to HarperCollins leaving the third party distribution business in the U.S. as well as charges from the publisher’s Canadian and Australian operations.