Digital Revenues Fall at HarperCollins

Digital Revenues Fall at HarperCollins Publishing HarperCollins reported revenues rising 1%, to $409 million, in the quarter ending 30 September. EBITDA dropped 24%, to $42 million, from $55 million in the same period last year.

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.

HarperCollins to Bring Back Agency Pricing as Early As Next Week

HarperCollins to Bring Back Agency Pricing as Early As Next Week

Nate Hoffelder

View posts by Nate Hoffelder
Nate Hoffelder is the founder and editor of The Digital Reader:He's here to chew bubble gum and fix broken websites, and he is all out of bubble gum. He has been blogging about indie authors since 2010 while learning new tech skills at the drop of a hat. He fixes author sites, and shares what he learns on The Digital Reader's blog. In his spare time, he fosters dogs for A Forever Home, a local rescue group.

8 Comments

  1. fjtorres6 November, 2015

    Imagine what their numbers would look without WATCHMAN…

    Reply
  2. Liz6 November, 2015

    I just find it interesting the mental disconnect they have between their falling digital revenues and their pricing model. Its like they can’t bring themselves to admit their pricing model is flawed.

    Reply
  3. Daniel Vian6 November, 2015

    H-C Executive #1: “I wish we could get rid of ebooks.”

    H-C Executive #2: “Just set the price high and no one will buy them.”

    H-C Executive #1: “Won’t people complain?”

    H-C Executive #2: “They won’t complain. They’ll just buy our harcovers.”

    H-C Executive #1: “Brilliant! I always knew you were brilliant!”

    Reply
  4. Dude6 November, 2015

    I don’t really get your comment about Divergent. A book like that obviously boosts sales, and then, since all these reports are YoY, the next year the reports are opposite.

    Ebooks aren’t down a huge amount it seems.

    Reply
    1. Nate Hoffelder6 November, 2015

      Revenues are effectively the same as last year, and yet Divergent is credited with the increase last year and the decline this year.

      That just seemed contradictory to me.

      Reply
  5. Dude6 November, 2015

    And I want to repeat the claim that the problem isn’t agency, it’s high pricing.

    Reply
  6. Syn6 November, 2015

    So the people that buy ebooks aren’t buying as many because of prices, and the people that have always bought print, are still buying print.

    Reply
    1. Nate Hoffelder7 November, 2015

      Pretty much.

      Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Scroll to top
%d bloggers like this: