PW: Trade Sales Drive Record Quarter at Scholastic

Jan 10, 2000

[ PW Home ] [ Bestsellers ] [ Subscribe ] [ Search ]

News

Trade Sales Drive Record Quarter at Scholastic
-- 1/10/00

Led by a 35% sales increase to $352.4 million in its children's book publishing and distribution segment, Scholastic Corp. reported total revenues of $507.8 million for the second quarter ended November 30, 1999. Within the book segment, the trade division had an exceptionally strong showing, headed by sales of Harry Potter and PokÃ©mon titles. Revenues in the book club and book fairs rose by about 17%.

In other segments, the 19% gain to $41.3 million in Scholastic's media, licensing and advertising division included results from Quality Education Data, acquired in January. Sales in the education group rose 10% to $51.4 million, while international revenues increased 2% to $62.7 million, with improved performances in Australia and Canada offsetting lower results from the U.K.

Net income in the quarter rose 30% to $41.3 million, a figure that includes a one-time charge of $8.5 million. The extraordinary charge involves a litigation reserve established in connection with a breach-of-contract lawsuit filed against the company by Robert Harris and Harris Entertainment relating to a joint venture between Scholastic and Harris to produce movies. During the quarter, a judge ruled in favor of Harris; Scholastic intends to appeal.

For the first six months of the year, net income rose 24% to $17.7 million on a 24% sales gain to $687.8 million.
Back To News
--->

A version of this article appeared in the 01/10/2000 issue of Publishers Weekly under the headline: