Saturday, May 10, 2014

Many Hachette Print Books Are Hard to Get From Amazon, As "Negotiations Are Underway"

 Publishers Lunch

A large number of Hachette Book Group print books are not available directly from Amazon.com in timely fashion, showing as shipping in anywhere from 2 to 5 weeks, even though the same titles are readily in stock at other booksellers. The NYT takes note of the unusual situation and elicits a response from HBG spokesperson Sophie Cottrell, who says Amazon is doing this "for reasons of their own." Cottrell provided us with the company's full statement, which we posted last night at PublishersMarketplace -- and our full story in today's Lunch Deluxe contains extensive details and background you won't find anywhere else.

After a year of record profits, Simon & Schuster continued to maintain strong margins, even with declining sales, in the first quarter of 2014. Sales fell 11 percent to $153 million (down $18 million), but OIBDA was up 8 percent (or $1 million) to $13 million.
Parent company CBS said that sales a year ago had "benefited from the continued success of fourth quarter 2012 releases," though even in that quarter sales were down 3 percent from the first quarter of 2012. As CEO Carolyn Reidy told us plainly, "we didn't have as many strong books as we did the last quarter," including fewer movie tie-ins. The softness was spread evenly across the company, as "all of our imprints and groups shared in the same lack of strong titles in the first quarter." Profits gained because "lower revenues were more than offset by a decrease in operating expenses" -- including the lower marketing, royalty and returns costs that go along with lower sales.

At the same time, however, Reidy noted "we're gearing up for a quite different picture in the second quarter." Anthony Doerr's All the Light We Cannot See, already receiving considerable praise, is "one of those books that make a career," Reidy said, and they are "working to make that a year-long bestseller from now to the end of the year." Hillary Clinton's Hard Choices publishes June 10, with details on her extensive promotional plans still being finalized, and other big titles coming that month include Mr. Mercedes by Stephen King.

HarperCollins reported their fiscal third quarter, ending March 31, with sales rising 14 percent to $354 million and EBITDA gaining even more, nearly doubling to $53 million (compared to sales of $311 million and EBITDA of $29 million a year ago). As noted in the previous quarter, the company cited "the higher contribution to profits from ebooks and ongoing operational efficiencies coupled with higher revenues" for the strong earnings.


Veronica Roth's Divergent series continued to bolster sales, accounting for 8 million net units for the quarter. eBook revenues represented 26 percent of overall sales for the quarter, up 46 percent from a year ago (when ebook sales were 21 percent of quarterly revenues). While the Roth books accounted for some of the ebook gains, ceo Brian Murray noted with some surprise that "we have been seeing growth [in ebooks] while the market is flat."

No comments: