Quarto 'on track' to meet full-year targets

Quarto 'on track' to meet full-year targets

Illustrated publishing group Quarto has released its interim results for the third quarter showing it is “on track” to meet its targets in reducing debt and growing earnings - and ahead of the group’s “traditionally strongest fourth quarter”.

Revenue for the quarter to 30th September 2015 was broadly flat at $54.4m (£35.3m)– the quarter for the same period in 2014 was $54.5m (£35.3m). Underlying revenues for the quarter were down 5.3%, the publisher said.

Revenues for the group's core publishing businesses were up on the prior year by 7.9% to $44.9m (£29.1m)– from $41.6m (£27m) in 2014 – with underlying publishing revenues up 1.3%.

The report noted challenges for the group’s Books & Gifts Direct business, caused by difficulties in the Australian and New Zealand economies and their weakening currencies.

Year to date revenue was $120.6m (£78.2m), up slightly on $120.1m (£77.9m) in 2014, with underlying revenues for the year to date down 4.8%.

In terms of the group's financial position, net debt on 30th September 2015 was $80m (£51.9m), a reduction from $82.3m (£53.4m) from a year earlier.

Marcus Leaver, c.e.o of Quarto, said: “This update shows the increasing strength of our performance throughout the year. Our third quarter saw clear revenue growth in our core publishing businesses and year to date our revenue performance is ahead of the same period last year, even once the economic and currency challenges faced by our Australian and New Zealand business are taken into account. A good performance in our traditionally strongest fourth quarter will help underpin our full year targets of bringing debt down further and increasing earnings once again.”