Without Potter, Scholastic's Report Loses Some Magic

by Jim Milliot, PW NewsLine -- Publishers Weekly, 9/22/2004

We're working on some longer projects, but some small bits for today. Most notably, Scholastic reports that the absence of Harry Potter V resulted in a big decline in sales and a higher loss in the quarter ended August 31. Revenue for the company dropped 32%, to $323.7 million, and the net loss jumped to $50.4 million from $24.8 million. The operating loss was slightly lower than expected.

Harry Potter and the Order of the Phoenix generated sales of $170 million in last year's first quarter, and without that huge injection, the children's book publishing and distribution division saw sales drop 58%, to $121.8 million. (Discounting Potter last year, sales went up by about $4 million, though it should be said that this number does include Potter sales this year.)

In addition to decreased sales of Potter product, the continuity division, which is in the children's publishing and distribution group, fell as Scholastic cut back its programs. And revenue in the media, licensing and advertising group also fell, by 27%, to $11.9 million. Sales in the educational publishing group did rise, by 12%, to $118.2 million.