Canadian Publishing Revenue Declined in 2006
By Josh Kerbel -- Publishers Weekly, 7/14/2008 8:06:00 AM
Operating revenue for the book publishing industry in Canada edged down 1.2%, to C$2.1 billion, in 2006 after increasing 3.2% in 2005 as the average household spending on books declined from C$111 in 2005 to C$108 in 2006, according to “The Survey of Book Publishers” released last week by Statistics Canada, Canada’s national statistics agency. Data collection for the Survey of Book Publishers represents approximately 95% of total revenues earned by the book publishing industry.
Three-quarters of industry operating revenue came from domestic sales of publishers' own titles and their exclusive agency titles, while exports and foreign sales generated 12%. Sales of publishers' own titles in Canada generated C$943 million in 2006, with textbooks accounting for 48% of the this amount, Trade books contributed 44% and children's books accounting for 8%.
The slight decline in operating revenues accompanied a 0.9% increase in operating expenses, driving the industry operating profit margin to 10.3% in 2006 from 12.1% the year before. Spending on salaries, wages and benefits accounts for roughly 20 cents of every dollar spent by the industry, rose 2.0%.
The Canadian industry continues to be characterized by concentration in terms of both participants and geography. In addition to being home to all of Canada's foreign controlled book publishers, which in and of themselves generated 41.7% of industry operating revenues, Ontario and Quebec accounted for 91% of industry operating revenues and 95% of industry operating profits in 2006. Operating profit margin for foreign controlled firms was 13.3% compared with 8.1% among Canadian-owned firms. Outside Ontario and Quebec, the industry is still driven by government largess, as the dollar value of grants, subsidies and tax credits still exceeds industry operating profits.
