MAIN NEWS HEADLINES
August 13 – August 20, 2009 Edition
S&S Revenues Dip in Second Quarter
NEW YORK, NY/AUTHORLINK NEWS/08/11/09–Simon & Schuster publishing revenues for the second quarter of 2009 decreased 2% to $181.4 million from $186.0 million for the same prior-year period principally reflecting the unfavorable impact of foreign exchange rate changes. Parent company CBS Corporation reported results for the second quarter ended June 30, 2009 last Thursday.
Publishing OIBDA and operating income for the second quarter of 2009 decreased 52% to $8.1 million and 58% to $6.1 million, respectively. The decreases were largely driven by higher author royalties and restructuring charges of $2.2 million related to headcount reductions partially offset by lower employee related expenses resulting from cost-savings initiatives.
Simon & Schuster’s domestic publishing groups performed relatively well in the second quarter. Adult sales were up while children’s sales were flat. E-book sales continued to soar, though audio books were down . International sales also fell, due to a soft market in the UK, S&S’s largest foreign market, and unfavorable foreign exchange rates.
CEO Carolyn Reidy told the media that S&S publishers are spreading out their lists and acquiring books more cautiously, “to give themselves the chance to publish each book correctly.” The company likely will publish fewer titles in 2009 than it released in 2008.