B&N claim to have 20% of US ebook market

B&N have released their Q2 sales and earnings statements today. Store revenue continues to drop, and the company saw a Q2 loss of $12.6 million dollars on $1.9 billion in revenue. Down towards the end of the press release they state that they have 20% of the market. I'm not calling them liars, but there's really no way to know for sure how much of the market they have (unless all the major ebookstores got together and shared their sales figures). I wouldn't place too much faith in that number. From the press release: Barnes & Noble, Inc. today reported sales and earnings for its fiscal 2011 second quarter ended October 30, 2010.

SECOND QUARTER RESULTS

Total sales for the second quarter were $1.9 billion, including sales of Barnes & Noble College Booksellers (“College”) of $798 million. Excluding College, total sales increased 1% over the prior year period. Comparable sales at Barnes & Noble.com increased 59% driven by increases in core products and sales of digital devices and digital content. Barnes & Noble comparable store sales decreased by 3.3% and College’s comparable store sales decreased by 1.5%.

The expansion of the Toys & Games department at Barnes & Noble stores produced a 42% sales increase for the department during the second quarter. In the third quarter, the company began testing additional concepts, including an expanded children’s offering and digital and electronics accessories, to drive further sales increases in 2011.

For the second quarter, the company reported earnings before interest, taxes, depreciation and amortization (EBITDA) of $46 million. The consolidated second quarter net loss was $12.6 million, or $0.22 per share, in-line with previously issued guidance of earnings of $0.05 per share to a loss of $0.25 per share.

As previously announced, the company continued to invest heavily in digital initiatives including: software and cloud services development costs; expenses relating to NOOKcolor; the addition of hundreds of thousands of titles to its digital catalog including a subscription management platform for digital newspapers and magazines; creating interactive proprietary content for children’s books; developing applications to serve multiple reading and smartphone devices – including iPad®, iPhone®, Android™ and BlackBerry®; and the rollout of NOOK Boutiques in Barnes & Noble retail stores.

The additional investments are expected to continue and peak during the second half of the year, and then increase moderately in the years ahead. Payoff for these expenses is estimated to begin to appear in the third quarter, when NOOKcolor is expected to be one of the world’s most sought after eReaders, and in the third and fourth quarters, when NOOKcolor owners will begin downloading digital content, including books and magazines.

BARNES & NOBLE LAUNCHES NOOKcolor

At the end of the second quarter, Barnes & Noble launched NOOKcolor, the first Reader’s Tablet that enables customers to purchase interactive digital content on a full color touch screen. Concurrent with the introduction of NOOKcolor the company introduced NOOKnewsstand™ and NOOKkids™, enabling customers to access periodicals, magazines, and interactive children’s books. Additional device features include web browsing, the ability to listen to music and much more.

NOOKcolor has received widespread critical acclaim from many technology publications, including the Wall Street Journal, which called the product “a winner.” Orders for NOOKcolor significantly exceeded the company’s expectations, and since going on sale on November 16, 2010, it has become the single bestselling product at Barnes & Noble.

“Since launching our eBookstore in the second half of last year, Barnes & Noble has quickly captured approximately 20% of the exploding eBook market. We have plans to grow our share well beyond 20%, and the early success of NOOKcolor is encouraging,” said William Lynch, chief executive officer of Barnes & Noble, Inc. “Selling digital content is becoming a big business for us that we expect to grow at exciting rates. Based upon the double-digit comparable store sales achieved over the past weekend, we are further convinced that eReaders and accessories will be a key holiday gift item and driver of holiday sales this year, leading to accelerating eContent sales in the quarters and years ahead. We’re continuing to invest in this opportunity to build the most expansive catalog of digital content available for sale, the best reading software on the market, and devices that deliver the most innovative digital reading experiences.”

About Nate Hoffelder (11393 Articles)
Nate Hoffelder is the founder and editor of The Digital Reader: "I've been into reading ebooks since forever, but I only got my first ereader in July 2007. Everything quickly spiraled out of control from there. Before I started this blog in January 2010 I covered ebooks, ebook readers, and digital publishing for about 2 years as a part of MobileRead Forums. It's a great community, and being a member is a joy. But I thought I could make something out of how I covered the news for MobileRead, so I started this blog."

3 Comments on B&N claim to have 20% of US ebook market

  1. Their announcement to “invest in this opportunity to build the most expansive catalog of digital content available for sale, the best reading software on the market, and devices that deliver the most innovative digital reading experiences” shows a very clear committment to the ebook branch.

    They should be thankful to amazon for kicking this business off, initially…

  2. I don’t think it is far fetched to think BnN has 20% share. I am sure they have market estimates that show what each seller is doing. BnN have been very aggressive about selling their Nook. Without them, there would be no serious competition to Amazon. This is good for everyone!

    If the Nook 2 comes out with the Sony touchscreen, be lighter weight, have a pearl display, but remain in a quality case, it would be an awesome unit.

    Kobo seems to be the only other company that is being aggressive in the US. If Pocketbooks wants to compete, they really need to step up fast. If it were not for websites like this one, I would not even know they exsist.

  3. Competition is good.
    Competent competitors are better yet.
    So far the NorthAm market is loking at three fairly solid competitors, one potential up-and-comer, and one fading hanger-on.

    B&N is doing well for themselves and for consumers but, Like Kobo, they are still playing catch-up to K3. Hopefully at some point (next spring?) they get ahold of some Pearl screens and get a bit closer to Amazon.

    Of course, in the red queen’s race of ebook readers, next year we’re looking at three major market shocks that should further challenge the players and wannabes; Mirasol, Android 3 for webpads/tablets, and the Kindle 4 so the pecking order is still subject to change.

    Going to be fun.

1 Trackbacks & Pingbacks

  1. Curtas: Sharp Galapagos Tablet disponível a 10 de Dezembro « eBook Portugal

Leave a comment

Your email address will not be published.


*