InnerWorkings, Inc. announced that the company has received significant new work from two of its long-term clients. These new wins will add approximately $20 million of annualized revenue for the company at full run rate, bringing the total awarded to $105 million through the first eight months of 2018. One of the new expansions comes from one of the world’s largest producers in the beer, wine, and spirits vertical, a client that InnerWorkings has been supporting for more than 10 years. The legacy solutions primarily involve luxury packaging in Europe and point-of-sale materials throughout Latin America. The new contract announced today is for their largest market, the United States, as well as Canada, and covers a broad range of marketing materials, including point of sale, value-added packaging, and promotional items. The other expansion announced today is with one of the world’s leading manufacturers of consumer goods, specializing in cleaning products. InnerWorkings has been supporting this client since 2014, managing promotional items and printed marketing collateral in the United States and Canada. The new contract expands the relationship to include permanent retail displays. Click Read More below for additional information.
Publishers’ revenues were up Feb. 2016, compared to Feb. 2015. Despite gains in Childrens/YA Books and Religious Presses, a decline in Adult Books meant an overall decline for Trade books of 0.9% Feb. 2016 vs. Feb. 2015 and 8.2% year-to-date vs. 2015. Also within trade, downloaded audio and print formats continued to grow as eBooks declined.
Big Picture Data
•Publishers’ book sales for Feb. 2016 were $662.2 million, up 4.2% from $597.4 million in Feb. 2015. These numbers include sales for all tracked categories (Trade – fiction/non-fiction/religious, PreK-12 Instructional Materials, Higher Education Course Materials, Professional Publishing, and University Presses.) ◦Year-to-date, sales were down 3.0% to $1.68 billion vs. the same two months in 2015.
•Trade (consumer) books sales were $418.1 million in Feb. 2016, down 0.9% from $422.1 million in Feb. 2015. This includes Childrens/YA Books, Adult Books and Religious Books. ◦Adult Books had $281.5 million in sales in Feb. 2016, down 6.6% from $301.2 million in Feb. 2015.
◦Childrens/YA Books had $101.2 million in sales in Feb. 2016, up 17.0% from $86.5 million in Feb 2015.
◦Religious Presses had $35.4 million in sales, up by 3.2% from $34.3 million in Feb. 2015.
◦Year-to-date, trade sales are down 8.2% to $907.2 million vs. the same two months in 2015.
Format Trends for Trade
•Trends appeared to continue from 2015. In Feb. 2016 vs. Feb. 2015: ◦Paperback books grew 9.8%
◦Downloaded audio grew 42.9%
◦Hardback books grew 4.6%
◦eBooks were down 18.7%
Educational Materials and Professional Books
•Educational Materials had gains of 5.5% for K-12 Instructional Materials and 58.5% for Higher Education Course Materials, in Feb. 2016 vs. Feb. 2015. Importantly, education sales in Feb. are typically low, relative to the rest of the year.
•Professional Publishing was down 19.0% in Feb. 2016 vs. Feb. 2015 which includes business, medical, law, scientific and technical books and journals.