Bloomsbury hikes profit forecasts again as Brits binge on books
Bloomsbury today lifted its revenue and profit forecasts for the second time in as many months as it hailed “exceptional” sales as a result of the pandemic.
The publishing house, best known for the Harry Potter series, said it expected revenue of £171m in the year to the end of February, while pre-tax profit is set to hit £14.8m.
This is ahead of previous guidance in January, when the firm raised its forecasts to £161.8m and £12.1m for revenue and profit respectively.
The bumper trading came as more and more people splashed out on books to keep them entertained during coronavirus lockdowns.
Strong sales continued into February following the release of global bestseller A Court of Silver Flames by Sarah J Maas.
Other popular titles included Anna North’s Outlawed, investigative journalism hit We Are Bellingcat and fantasy novel Piranesi, which was awarded Audiobook of the Year 2021.
Bloomsbury reported strong sales from its back catalogue, including Harry Potter and the Dishoom cookbook.
In its non-consumer division, Bloomsbury has also benefited from increased demand for its digital academic resources as schools and universities shifted to remote learning.
The London-listed firm reported net cash of £54m at the end of February, and said it was weighing up potential investment and acquisition opportunities.
Bloomsbury has repaid the £63,000 of furlough money it received, as well as temporary salary reductions for staff for three months last year.
“The popularity of reading during lockdown is a ray of sunshine in an otherwise very dark last year. February, the final month of our financial year, saw an exceptional sales performance for Bloomsbury as the surge in reading continued,” said chief executive Nigel Newton.
“We do not yet know how consumer behaviour will change as academic institutions, shops and leisure activities reopen and whether this popularity will continue as restrictions are lifted.
He added: “We are confident, though, in the underlying strength of our business, the quality of our titles and content and our long-term strategy. Our medium and long-term expectations remain unchanged.”