Indigo Books & Music, Canada’s largest book retail chain, reported 5% revenue growth for its fiscal year ended April 2, but its net earnings dropped to C$11.3 million from C$23.6 million in the previous year. CEO Heather Reisman said the drop in profit was not unexpected due to the company’s long-term strategy, which includes large-scale investments in its e-reading spinoff, Kobo, and new lifestyle product line. Revenue for the year was C$1.02 billion compared to C$969 million last year.
Kobo launched its new touch screen edition at BookExpo America last week. During the fourth quarter of fiscal 2011 and the first quarter of fiscal 2012, Kobo raised C$50 million in additional funding from investors including Indigo, which retained its majority ownership at 51%.
"We are pleased with our revenue growth, particularly given the significant transition going on in our industry,” said Reisman in a statement. “Consumers have embraced our Kobo eReader and eBook offerings and we are thrilled to be at the forefront of an emerging global industry."
Revenue for the fourth quarter was C$211 million, down C$17.6 million from last year and the chain had a loss of $11.7 million compared to earnings of C$500,000 in last year's final period. The company noted that there was one less operating week in the quarter this year compared to last and no hit equal to the runaway success of the Stephenie Meyer Twilight trilogy.
