PW: Trade Sales Spark Growth at Scholastic

Led by a 23% increase to $200.5 million in its children's book publishing and distribution segment, Scholastic reported that total revenues for the third quarter ended February 29, 2000, rose 17% to $321.8 million. Net income was $2 million, compared to $136,000 in the same period last year.

The children's book publishing segment's trade division had a solid quarter, with strong sell-through headed by its Harry Potter novels plus Pokemon, I Spy, Animorphs and Everworld titles. Book club and fair revenues increased 12% over the third quarter of fiscal 1999. Sales in the educational publishing segment rose 22% to $40 million, helped by growth from the company's Read 180 and Scholastic Reading programs. International revenues increased 17% to $48.1 million, due to improved results in Scholastic's Canadian and Australian operations, while revenues in the media licensing and advertising group fell 21% to $24.2 million.

For the nine-month period, net income rose 37% to $19.7 million on a 22% revenue gain to $1.0 billion. Net income included an $8.5 million one-time charge for a reserve established in a breach-of-contract lawsuit (News, Jan. 10).