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Profits Fall at Hachette
Hachette Book Group USA parent company Lagardere released more detailed financial results yesterday, showing a 16.8% decline in earnings before interest and taxes to 250 million euros for the Lagardere Publishing Group in 2010. Earlier, the company reported that sales dropped 4.8% to 2.16 billion euros. The decline in profits, like the drop in earnings, was due to the phenomenal success of Stephenie Meyer in 2009; without the unprecedented sales from Meyer (45 million copies vs. 11 million), revenues were down in the U.S. and U.K.Full Article: http://www.publishersweekly.com/pw/by-topic/industry-news/financial-reporting/article/46428-profits-fall-at-hachette.html
Sales in the U.S. and Canada comprised 23% of total revenue in 2010, approximately 498 million euros or $687 million at present exchange rates. E-book sales represented 8% (10% in December) of U.S. sales, about $55 million. Excluding Meyer, sales in the U.S. rose 11%.
Lagardere said profit margins at the publishing group fell from 13.2% to 11.6% due to a change in product mix (fewer Meyer bestsellers this year) and digital investments.