The earnings report was boosted by last year’s Harlequin acquisition, and the $25 million in revenue the romance publisher added to the bottom line. Absent harlequin, HC revenues dropped by $7 million, and EBITDA to $40 million.
The HC press release blamed the poor revenue report on ” lower revenues from the Divergent series, lower ebook sales and negative foreign currency fluctuation”. (Funny, Divergent was credited for the good quarter last year.)
One bright spot, however, was the sale of the first draft of To Kill a Mockingbird. HarperCollins reported that revenues were boosted by sales of Go Set a Watchman.
Digital revenues (both ebook and audiobook) accounted for 22% of HarperCollins bottom line, down from 23% last year. ebooks made up 20% of this year’s revenues, down from 22% in the same period last year.