Trefis Team , Contributor - Forbes
News Corp‘s book publishing business has been trending well over the past few years, led by some of its popular titles such as Divergent series. The segment revenues have grown at a steady pace and now account for close to 20% of the company’s overall revenues.
However, the EBITDA margins are lower and stood at 10% in 2014, according to our estimates. We believe that the company will continue to see steady revenue growth in book publishing, primarily led by a growth in e-books sales. With the growth in e-book sales, which have lower production and distribution costs, News Corp can look forward to better margins in the coming years.
While the growth rate of e-book sales has slowed in the recent years, there is a healthy market for both print as well as digital editions of books. On that note, we discuss below the trends in book publishing and our estimates for News Corp.
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