Kindle Fire extends to 170 countries
Amazon has announced it wil...
Pearson makes "significant changes" to structure
Pearson has revealed &ldquo...
Penguin to pay $75m to settle class action
Penguin has agreed to pay $...
Amazon to launch commercial fan fiction platform
Amazon Publishing has annou...
Barefoot: 'We won't deal with Amazon'
Children's publisher Ba...
B&N profit sinks, launches new Nook
21.02.12 | Lisa Campbell
Profit at US bookseller Barnes & Noble sank 12% in the third quarter, despite both physical and digital book sales rising, as the bookseller announced a new 8GB Nook model.
The company revealed today (21st February) that total sales increased 5% from $2.3bn (£1.5bn) to $2.4bn (£1.5bn) for the quarter ending 28th January 2012; physical book sales rose by 4% over the year and digital book sales increased 85% year-on-year.
However, the company’s earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 12% compared to the year before, from $170m to $150m, while total company net income was $52.0m for the quarter. BN.com’s EBITDA losses increased from $50m to $94m “as the company continued to invest in its rapidly growing Nook business, including advertising costs and personnel.
Sales of B&N’s online business BN.com increased 32% from a year earlier, from $319m to $420m and sales of all Nook tablets including Nook Simple Touch, Nook Color and the new Nook Tablet rose 64% in the third quarter.
B&N said its internet revenue results “were triggered by continued growth of Nook device and digital content sales, offset by a decline in online physical product sales”.
The new 8GB Nook tablet is selling for $199—the same price as Amazon’s Kindle Fire tablet in the US. B&N also lowered the price of its Nook Color model to $169.
William Lynch, chief executive officer of Barnes & Noble, said: “In the third quarter, our traffic and sales in stores were the highest we’ve seen in five years. Our physical book sales at our stores increased more than 4% over last year… Importantly, our Nook digital content business continues to grow rapidly, and according to some of the largest US publishers, we maintained or slightly gained share in the e-book market during the third quarter. “
The company also said sales in its "college” arm fell 3% from $540m to $525m, which B&N blamed on a shift from selling new and used textbooks to lower price textbook rentals.