You are viewing your 1 free article this month. Login to read more articles.
International book packager and publisher Quarto is continuing to defy the economic gloom with its c.e.o. Laurence Orbach even suggesting the turmoil could be good for his business, with books set to reclaim market territory that "many deemed lost to other, more expensive entertainments and pastime".
Revenues for the nine months to 30th September 2008 increased by an underlying 19% to £78.7m, and underlying operating profit rose 15% to £6.2m. The group recorded a "very strong" performance from its international co-edition business, with operating margins "slightly improved on robust sales of backlist titles". At its publishing division operating margins were adversely affected by the "increasingly difficult US retail environment", but overall its performance was "still strong, with better trading results from the UK and Australasia".
Orbach said: "The general economic environment may not improve over the near future, but Quarto’s performance is demonstrating the resilience of its business model, which relies upon creating books that will backlist and be of relevance to the public for a long time, come feast or famine."
On the wider turmoil, he added: "At a time when investors are bewildered by a merciless financial storm sweeping all over the globe, it is worth remembering that the resilience of book publishing is no accident. Unusually in the media sector, this industry has remained faithful to the most basic principles of commerce by avoiding dependence on advertising in its business model. Websites, newspapers and magazines have all received a built-in 'subsidy' to their
products by inherently relying on advertising revenue, which can be fickle. By contrast, book-buyers have to pay the full economic cost of their purchases, and a typical paperback book, at the price of a movie seat, remains wonderful value for money; even a magnificent art tome, or prodigious work of reference often costs less than a tie (and who needs yet another tie?)."