Best Book PublishersThe best book publishers
The 5 major financial reports on traditional publishing reveal
In this article we examine the current quaterly finance releases of the big 5 book publishers and try to make some inferences from the figures. Of course the big 5 are Hachette, HarperCollins, Macmillan, Penguin Random House and Simon & Schuster. They are often seen as a symbol of the condition of established textbook publishers in the United States.
Publishers Lunch (Firewall) calculated the total US book publisher shares of the major 5 series (using Association of American Publishers data) in April 2015. If we Macmillan at 5%, that's more than 80% of U.S. commercial cake publishers. Not one of the five is independent; they are all part of much bigger corporations, most of them not openly trading, and so none of the corporations reports their results with many details.
Amazons unveils few particulars about selling textbooks, and Apple the same, so why should we anticipate these giants to be different? In 2015, Lagardère Publishings generated 31% of turnover and 49% of profit. In the USA and Canada, 25% of the turnover of the publication business was generated. It is interesting to note that in 2015 the firm only released 900 for adults and 250 for young people.
Revenues are only included for Lagardère Publishings as a whole, with percentage changes for the division. Harper Collins is the "second biggest book publishers in the world" (after Penguin Random House). A few folks keep their noses near HarperCollins because it's part of News Corp, which may sound a little like Evil Corp, but it's different.
Newcorp is part of the Rupert Murdoch community, which also comprises Fox Century Fox, an organisation currently featured on the newscast. Then you would never buy a book from Simon & Schuster again (see below). In the last 2015 issue of New Corp.'s business review, book publications accounted for 19% of the company's revenues and 26% of EBITDA*.
Twothirds of News Corp's newspaper revenues include the Wall Street Journal and the New York Post. The News Corp Q3 review published in May showed HarperCollins' revenue declined $44 million, or 11%. The Publishers Weekly took a look behind the dates. There is a tortuous line of argument for the success of the e-book sales: By 2015 the share of turnover generated by e-books was 22%, in 2016 e-books and audiovisual together made up 21% of turnover.
Like I said above, I think that if there is a lack of selling, the publisher managers could divide too much debt between a lack of new bestsellers, but there is no doubt that the publisher is a hit-driven industry (in this regard similar to the film and musical businesses). If HarperCollins received about half of this amount for each copy of the book in 2015, the book generated just over $6 million in all.
Given that the e-books sell at about 25% annual rates of the gaming community, around 300,000 e-book purchases would be adding approximately 300,000 prints to the swimming pool. Last year the Diverstien had already been removed from the best-seller lists: their revenues peaked in 2014. Kindle spending varies from $6. 99 and $7. 99 to $9. 99 for Allegiant (with the foreseeable outcome that the Amazon pocketbook is $2 less expensive than the Kindle spending).
In order to lose 29 million dollars in turnover in three month, there would have to be a decline of at least 5 million units. Macmillan Publishers generated 42% of Holtzbrinck's revenues in 2014 and North America 39%. However, the remainder of the turnover comes from STM (Scientific, Technical, and Medical) and textbooks, which have a completely different dynamic from the field of commercial publication.
Publisher's Weekly gave an outline of these financials in a mid-2015 paper. When commercial publication a Class 5 class-room Penguin Random House would be the tyrant. Publishers Weekly described the business as publishers publish 15,000 new publications per year from 250 printing units and employ 12,500 people. Until 2013, Random House and Penguin were separated entities when their joint proprietors Bertelsmann and Pearson approved a 53%/47% stake combination.
The Bertelsmann Group is a privately held enterprise under the control of the German Mohn fam. People at Bertelsmann account for 22% of PRH's revenues. Nowadays Pearson is a listed enterprise that concentrates exclusively on training. Well, the messages, as they have become the standard for Pearson, were not good. Revenues decreased 7% (or 11% at constant rates ) and internal operating profit decreased 80%.
Bertelsmann's latest revenue reporting at Penguin Random House (2015 annual report) shows an 11th quarter of 2010. 8 percent growth "mainly due to favorable currency translation and higher bookselling. 2, which is mainly due to "savings from the largely complete Penguin and Random House integration", i.e. the elimination of "redundant" personnel and operation.
Simon & Schuster (S&S) has been part of CBS Corporation since 2006, but how it got there sounds like a bag story of fusions and takeovers in the twentieth year. Each year S&S releases over 2,000 books from 35 prints, among them pockets and scribners. Last year S&S had a share of less than 6% of CBS turnover and an even smaller share of the company's internal operating profit.
Revenues ended the year just over 2104, all due to a solid 4th quater, partly due to best-selling magazines by Stephen King (The Bazaar of Bad Dreams) and Donald J. Trump (Crippled America: How to Make America Great Again). On July 28, Publishers Weekly announced five of the top ten best selling Apple iBooks releases, three of the top five, on last week's Apple iBooks bestseller-lists.
Following many years of expansion, the Big 5 now reports revenues and earnings, most of which are stagnating or falling. At the end of 2012 HarperCollins (News Corp) and Simon & Schuster were discussing a fusion. The News Corp had also been considering a tender for Penguin prior to the Random House alliance. In case you are interested in the financial situation of the publisher sector, especially the public reporters, you need a Publishers Lunch and not Publishers Weekly (PW) subscriptions.
A Publishers Lunch plan costs $275/year. So the best part of Publishers Lunch stays behind the payment wall, although I have used some of its analyses to tell my coverage in this article. There' s an incredibly poor meta data confusion for this book on Amazon.
Three different pages are available for the book, under ASIN: There is a forth for the "Memorial Edition" of the book (ASIN: B00CO4GO7I). There is a simple old Kindle editions for $9.99 ($13.49 for the "Memorial Edition") and a "Kindle editions with audio/video" for $7.99. If you are on the $9th 99 Kindle Editions page and click on the pocketbook, you will be taken to an advanced Kindle Editions page for $2 less.
When I planned to buy the book, I would scratch my mind trying to find out what the stern to buy and why the pocketbook is so much less expensive than the Kindle e-book.