News

« Headlines

Second quarter income drop for HarperCollins

07.02.07 Kimberly Maul

HarperCollins saw a decrease in operating income for the second quarter, ending 31st December, parent company News Corp has announced. Operating income was 54m dollars for the second quarter, a 29.8% decrease from 77m dollars a year ago. For the six months ending 31st December, operating income was 109m dollars, down from 147m dollars.

Revenues for the book publishing segment of News Corp were 393m dollars, up from 390m dollars in the second quarter last year. For the six months ending 31st December, revenues were 761m dollars, down from 781m dollars for the six months ending 31st December 2005.

"The results were not unexpected," said HarperCollins c.e.o. Jane Friedman. "We knew it was going to be tough, but it was better than I anticipated. I feel we have had a very, very good quarter."The second quarter last year was the most successful quarter for C S Lewis' "The Chronicles of Narnia" series, which made 104m dollars, Friedman said.

Another contributing factor to the drop in income and "a considerable write down," Friedman said, was the bankruptcy filing of Advanced Marketing Services, a major distributor for HarperCollins. When asked about how the cancellation of O J Simpson's If I Did It affected the quarter's financial results (the book was expected to be released in November), Friedman had no comment.

Looking ahead to the rest of fiscal year 2007 and into 2008, Friedman was optimistic. "We've come around the bend," she said. She mentioned several factors helping the company in the coming months, including HarperCollins' recent distribution deal with Hyperion and Disney, the upcoming distribution of Harry Potter and the Deathly Hallows and the "unexpected pleasure" of having the HC book The Measure of a Man, by Sidney Poitier, chosen as the next Oprah Book Club choice.

Financial US HarperCollins harry potter jane friedman

See Also