Margins Up at RH
by Staff -- Publishers Weekly, 3/26/2007
Earnings growth outpaced revenue gains at Random House in 2006, due mainly to an improved performance in Random's North America and German subsidiaries, along with continued strong profitability in the U.K., parent company Bertelsmann reported last week. The sales increase was boosted by acquisitions in the year, which included buying a majority share in nonfiction publisher BBC Books; purchasing religious presses Multnomah in the U.S. and Gerth Medien in Germany; acquiring sports book publisher Triumph Books; and Random House Asia assuming 100% ownership of its former Korean joint venture.
| 2005 | 2006 | % chg. | |
| Revenue¹ | $2,431.2 | $2,589.5 | 6.5% |
| EBIT² | 220.8 | 242.1 | 9.6 |
| Margin | 9.1% | 9.3% | |
| ¹Converted at rate of 1.33 euro to $1. ²EBIT=earnings before interest, taxes and special items. Source: Reed Business Information | |||
