Harlequin Has Strong Earnings Gain in 2nd Qtr
By Jim Milliot -- Publishers Weekly, 8/19/2002
Total revenues at Harlequin rose 2.6%, to C$144.9 million ($91.3 million), and operating profit increased 16.7%, to C$25.1 million ($15.7 million), for the second quarter ended June 30, parent company Torstar Corp. announced last week.
The revenue gain was led by Harlequin's core women's fiction line, which increased sales by C$7 million, about 5%, over the second quarter of 2001. Sales were up in the company's North American segment, while overseas revenues were flat, with results in Japan particularly soft. In North America, sales were up and earnings rose C$800,000 in the retail segment, while sales dipped but earnings increased C$900,000 in the direct-to-consumer business, where lower revenues were offset by reduced spending on its online venture, eHarlequin. Profits at Harlequin were also boosted by a C$1.9 million reduction in losses in its creativity division.
For the first six months of 2002, operating profit rose 10.2%, to C$52.9 million on a 0.3% increase in revenues to C$288.4 million. Executives said they expect the company to have a solid second half of the year, noting that some of Harlequin's stronger titles will be released in the fourth quarter.
