The collapse of Baker & Taylor cost HarperCollins $13 million in the quarter ended September 30, 2025, parent company News Corp reported. The write-off of the money owed by the wholesaler was a key factor in dropping HC’s earnings in the quarter from $81 million last year to $58 million in the most recent period.
Lower first quarter sales also contributed to the drop in profits, with revenue falling 2%, to $534 million. News Corp attributed the decline to strong sales last year of J.D. Vance’s Hillbilly Elegy, which soared when Vance was named Donald Trump’s running mate. Digital sales also took a bit of a dive, falling 9% due to a 11% drop in digital audiobook sales and a 9% decline in e-book sales. The audiobook news from HC is the latest sign that growth of the format is slowing following the entry of Spotify more than a year ago, though audio sales are still ahead of where they were before Spotify entered the market.
Other contributing factors to the down quarter cited by News Corp were softer consumer spending and delayed orders “from certain customers.”
On the bright side, News reported that Katabasis by R.F. Kuang, An Inside Job by Daniel Silva, and We Are All Guilty Here by Karin Slaughter all sold well in the period.
Despite the soft quarter, Robert Thomson, CEO of HC parent company News Corp, struck an upbeat note for the current period, telling analysts that it appears that the “sluggish” book market has appeared to improve in recent weeks “as orders have rebounded and our recent releases are thriving.”
In particular, Thomson said that sales of religion books have bounced back, noting that “we saw elevated interest in the Bible following the tragic assassination of Charlie Kirk,” with September Bible sales revenue rising more than 65% compared to the prior year.
Thomson, who has never shied away from expressing his thoughts about AI, once again weighed in on the technology in the release of the company’s first quarter performance.
“It is also patently clear that the value of IP in the age of AI is misconceived,” Thomson said. “Information and sophisticated data are the essence of AI, and without these essential ingredients, AI is but empty, ignorant infrastructure. Electricity without alacrity. Buildings without billings. Chips without chops. Thankfully, we are seeing a positive trend with both enlightened companies and wise courts deciding that creativity and content must not be stolen, but purchased for a reasonable price. Courtship and courts are both crucial components of our strategy. Our wooing has gained increasing traction, and we expect to announce further partnerships in the near future.”
