Revenue at Penguin Random House fell 3.3% in the first half of 2018 compared to the same period a year ago, dropping to €1.48 billion from €1.53 billion a year ago, parent company Bertelsmann reported. Earnings fell 17.0%, from the first six months of 2017, with EBITDA (earnings before interest, taxes, depreciation, and amortization) declining to €171 million. Both Bertelsmann and PRH chairman Markus Dohle attributed the decline in results, in large part, to the negative impact of exchange rates. In his letter to employees, Dohle explained that while “headline” figures were down, excluding the impact of exchange rates “underlying operating revenue and profit numbers for Penguin Random House in U.S. dollars have been stable year over year. This means that the quality of our business and our earnings have been on the same—high—level as in the prior year. Our core business remains very strong globally.” Click Read More below for additional information.
FedEx has made the strategic decision to not renew the FedEx Express U.S. domestic contract with Amazon.com, Inc. as we focus on serving the broader e-commerce market. This decision does not impact any existing contracts between Amazon.com and other FedEx business units or relating to international services. As previously disclosed, Amazon.com is not FedEx’s largest customer. The percentage of total FedEx revenue attributable to Amazon.com represented less than 1.3 percent of total FedEx revenue for the 12-month period ended December 31, 2018.
There is significant demand and opportunity for growth in e-commerce which is expected to grow from 50 million to 100 million packages a day in the U.S. by 2026. FedEx has already built out the network and capacity to serve thousands of retailers in the e-commerce space. We are excited about the future of e-commerce and our role as a leader in it.