The Scholastic Corporation, US publisher of J.K. Rowling’s Harry Potter series, has reported a net loss of US$ 7.7 million for the quarter that ended February 26, 2007, compared to a US$15.5-million loss for the same period last year.
On a more positive note, the company’s revenues for the quarter were up 2% over last year to US$497 million. Chairman, CEO and president Richard Robinson pointed to strong sales in Scholastic’s School Book Clubs (revenues were up 3%) and Children’s Book Publishing (up 4%) divisions, but added that high promotional costs and debt payments have caused the company to ‘reduce its outlook for Q4 and the full year.’
Without a new Harry Potter product to coast on, Scholastic’s trade revenues were buoyed by Potter back-list sales and bestseller The Invention of Hugo Cabret.
The company is expecting a major cash infusion when the seventh and final Harry Potter instalment is released in July. Earlier this year, Scholastic announced it would print 12 million copies of the book for the US market, a new national printing record.