Harlequin Posts Solid Year
By Jim Milliot -- Publishers Weekly, 2/26/2009 7:08:00 AM
Harlequin was a bright spot for parent company Torstar in 2008. Revenue at the romance publisher rose 2.2%, to C$472.9 million ($379 million), while operating profit increased 11.2% to C$67.4 million. Sales in the company’s North American retail and Overseas segments were up in the year, offsetting declines in the North American direct-to-consumer segment. Harlequin also had a slight benefit from the strengthening of the U.S. dollar. Full year’s results were given a boost by a strong fourth quarter in which revenue jumped nearly 19%, to C$126.2 million, and profits rose 34.6%, to C$17.1 million.
Torstar president Robert Prichard praised Harlequin’s performance, noting 2008 was “the third year in a row of business growth for Harlequin which is making important gains in both print and digital products.” In the North America retail segment, sales were up in both series and single title formats, while the bottomline benefitted from a decline in returns. The direct-to-consumer segment suffered from a declining customer base which was somewhat offset by improved payment rates and more effective mailings. The company also saw higher sales of print and digital books over the Internet. A highlight in the Overseas market was Harlequin’s deal with the Japanese SoftBank Corp. to distribute digital manga content on cell phones and Internet distribution sites. Sales from this operation countered a drop in sales of traditional books.
Torstar remained upbeat about prospects for Harlequin in 2009 despite the bad economy. In early 2009, Harlequin continues to perform well and results are expected to be stable for the year despite cost increases for pensions and paper. The positive outlook could change, however, due to a decrease in consumer spending in the U.S. and “disruptions to the U.S. retail distribution system.”
