Bloomsbury reports record-breaking first-half earnings

(Sharecast News) - Bloomsbury Publishing reported record-breaking earnings in its interim results on Thursday, marking the fourth consecutive half-year of double-digit growth in both revenue and profit. The London-listed independent publisher said revenue was up 11% year-on-year in the six months ended 31 August, reaching £136.7m, while profit before tax advanced 8% to £14m.

Diluted earnings per share jumped 11% to 13.66p, while net cash declined 6% to end the period at £39.1m.

The board declared a 162% surge in the interim dividend to 3.7p per share.

Within the consumer division, Bloomsbury recorded robust revenue growth of 17%, reaching £89.4m, while profits before tax and highlighted items increased 26% to £11.2m.

The firm reported 8% growth in Adult Trade revenue, amounting to £27.6m, with a profit before tax and highlighted items of £0.1m.

Children's Trade revenue meanwhile saw substantial growth of 22% to £61.7m, accompanied by a 29% increase in profit before tax and highlighted items to £11.1m.

Bloomsbury celebrated remarkable sales growth of titles by Sarah J. Maas, surging 79%, while the enduring popularity of Harry Potter remained evident, with robust sales even 26 years after its initial publication.

Within the non-consumer division, the company recorded modest revenue growth of 2% to £47.3m, with profit before tax and highlighted items falling to £5.9m from £7.1m a year earlier.

The company's Academic and Professional division generated revenue of £36.4m, with profit before tax and highlighted items at £5.9m.

Meanwhile, Bloomsbury Digital Resources (BDR) revenue amounted to £13.3m for the period, with the company on track to achieve its new BDR target of 40% organic revenue growth over the five years leading up to 2027-2028.

"Bloomsbury achieved our fourth consecutive double-digit growth in revenue and profit in the first half," said chief executive officer Nigel Newton.

"These are also our highest ever first half results, with year-on-year revenue growth of 11% to £136.7m and profit growth of 11% to £17.7m.

"These results demonstrate the strength of our strategy of publishing for both the consumer and academic markets."

Newton described fantasy as a "huge and increasingly popular" genre that had driven the firm's consumer division forward.

"Sales of Sarah J. Maas and Samantha Shannon grew 79% and 169% respectively in the period, and demand for Harry Potter, 26 years after publication, remains strong.

"The consumer division revenue grew by 17%, achieving a 26% increase in profit before tax and highlighted items to £11.2m.

"Bloomsbury Digital Resources (BDR) consolidated last year's exceptional growth and increased subscription revenue to 47%."

The non-consumer division's "resilient performance", with 2% revenue growth and £5.9m of profit before tax and highlighted items, demonstrated what Nigel Newton called the strength of Bloomsbury's long-term academic strategy.

"Since the period end, Bloomsbury author Jon Fosse won the most important prize in the literary world, the Nobel Prize in Literature, becoming the eighth Nobel Prize winner on Bloomsbury's Methuen Drama list.

"Bloomsbury's successful strategy of diversifying across formats, markets and territories has created a stronger and more balanced business and a smoother earnings profile across the year.

"Recognising this, and in view of a better balance between sales in the first and second halves of the year than in the past when we were more heavily weighted to the second half and the Christmas market, we are increasing the proportion of the full year dividend paid at the interim."

Newton said Bloomsbury was maintaining its overall dividend guidance for the whole year.

"The strong first half performance means that we are confident of achieving the board's expectations for the year ending 29 February.

"Our strong financial position, with net cash of £39.1m, gives us significant opportunities for further acquisitions and investment in organic growth."

Bloomsbury said it considered current consensus market expectation for the year ending 29 February to be revenue of £273.1m and profit before tax and highlighted items of £32.5m.

At 0859 BST, shares in Bloomsbury Publishing were up 1.41% at 409.68p.

Reporting by Josh White for Sharecast.com.