Bloomsbury reported results for the six months ending August 31, with continuing pre-tax profits falling 40 percent to £0.9 million, even as sales rose 2 percent to £43.5 million. With recent acquisitions the academic and professional division now comprises 28 percent of company sales, though "academic sales peak at the beginning of the academic year, in September and October."
And the Harry Potter fall-out has had a dire effect on children's book sales.
Sales at the adult division were flat (and down 5 percent before acquisitions), while children's and educational sales fell 23 percent and operating profit in that segment disappeared, blamed on the comparison to last year's Harry Potter sales tying in to the final movie.
BUT eBook sales for the period grew 89 percent to £4.5 million, comprising 10 percent of all sales and 15% of adult sales.
Read the release to see what the company has to say. An upbeat quote: "With our Academic acquisitions over the last 16 months, our global restructuring in 2011, our ongoing innovation in digital and our continuing strong balance sheet, the Group continues to progress with its strategy and is well positioned for the future."
The market, it seems, isn't listening. Bloomsbury's stock is down over 5 percent today on the earnings decline.