Earnings Up, Sales Down at Harlequin
by Staff -- Publishers Weekly, 5/20/2002
Revenues at Harlequin fell 1.8% in the first quarter ended March 31, 2002, to C$143.5 million ($91.5 million), but operating profits increased 5.3%, to C$27.9 million, parent company Torstar announced last month.
Sales were down due to a C$2-million decline in the Creativity division plus timing differences in Harlequin's publication schedule. Torstar executives said that while Harlequin beat expectations in the period, results will be better in the second and third quarters when the company's list is stronger. In the first quarter, North American retail sales met targets, but sales to book clubs and in overseas markets fell.
Harlequin was able to boost earnings despite a decline in revenues because of a C$4-million reduction in spending on eHarlequin. The company has merged its online and direct marketing operations to form the direct-to-consumer group. Executives said the new group is shifting its focus from membership acquisition to retaining the members it has recruited.
