2016 operating profit and eps slightly better than January 2017 guidance. Strong 2016 cash conversion Sales of £4,552m declined 8% in underlying terms. Good growth in Pearson VUE, US Virtual Schools Online Program Management and Wall Street English in China was more than offset by expected declines in US and UK student assessment and US school courseware, and a much worse than expected decline in North American higher education courseware, as detailed in our 18 January trading statement. Deferred revenue was broadly level in underlying terms and is now 18% of our revenues (2015: 16.5%). Adjusted operating profit of £635m was down 21% in underlying terms due to weaker revenues, the partial reinstatement of incentives and other operational factors, partially offset by cost savings from the restructuring plan announced in January 2016, a larger contribution from Penguin Random House, helped in part by modest one-off benefits from the integration programme, and a return to profit in our Growth segment. click Read More below for additional detail
in EBITDA (earnings before interest, taxes, depreciation, and amortization) in the quarter ended December 31, 2018, over the comparable period a year ago. Profit in the most recent quarter (the second period of fiscal 2019) was $88 million, up from $78 million a year ago. Revenue in the quarter increased 6% over 2018, to $496 million.
In a statement, Robert Thomson, CEO of HC parent company News Corp, said the publisher’s gains were due in part to “the burgeoning of [sales] of digital audio.” Sales of digital audio jumped 58% over last year’s second quarter, and News Corp reported that digital sales rose 12% in the period, as softness in e-book sales was offset by the gains in audio. Digital sales represented 17% of consumer revenue in the quarter, up from 16% a year ago.
Looking at its segments and titles, News Corp reported that sales were up in the general books group as well as in its Christian publishing division. Among the company’s top sellers were Homebody by Joanna Gaines and The Next Person You Meet in Heaven by Mitch Albom, as well as the continued success of Girl Wash Your Face by Rachel Hollis.
For the first six months of fiscal 2019, HC’s EBITDA was up 24% over the first half of fiscal 2018, to $156 million. Sales rose 5%, to $914 million.
more at source: https://www.publishersweekly.com/pw/by-topic/industry-news/financial-reporting/article/79216-hc-sales-earning-up-in-q2-news-ceo-takes-swipe-at-audible.html?utm_source=Publishers+Weekly&utm_campaign=84d9b6d5f9-EMAIL_CAMPAIGN_2019_02_08_03_42&utm_medium=email&utm_term=0_0bb2959cbb-84d9b6d5f9-304472333