Scholastic revenues fall in third quarter

Scholastic revenues fall in third quarter

Scholastic's revenues fell 1.3% in the third quarter for fiscal year 2014 to $373.5m but revenues from its core book business increased 1%.

For the period ending 28th February, revenues from the children’s book publishing and distribution division totalled $190m.

Richard Robinson, chairman, c.e.o. and president, said: “In our children’s book business we had a solid third quarter, driven by higher revenues in our school book clubs and book fairs, as well as by popular new trade releases.”

Revenues from the media division was up 4% to $12.2m but sales in the educational technology and services segment fell 14% to $35.8m.

“After a very strong first half, our education business was impacted in the third quarter by the combination of our educational technology and classroom and supplemental materials sales forces,” said Robinson.

In the international division, trade revenues in the UK, Canada and Australia increased on the back of the success of the Hunger Games trilogy, but overall revenue fell -3.6% to $91m. Scholastic blamed the drop on unfavourable foreign exchange rates.

The company’s fiscal third-quarter loss narrowed thanks to a favourable settlement of federal tax audit. It reported a loss of $12.1m, or 38 cents a share, compared with a loss of $20.1m, or 63 cents a share, during the same period a year earlier.