PRH profit, turnover up in 2021

Penguin Random House (PRH) reported 9.2% earnings growth on a 6% increase in revenue in 2021, as reported by parent company Bertelsmann.

PRH’s worldwide revenue reached €4.03 billion (AU$5.86 billion), compared to €3.80 billion (AU$5.53 billion) in 2020. EBITDA operating profit (earnings before interest, tax, depreciation and amortization) was €755 million (1.09 billion from €691 million (A$1 billion).

Revenue increased “in all territories”, while EBITDA growth was driven by the US business, “many successful new releases”, “solid” backlist sales and sustained audio growth . The United States accounted for the majority of sales by region (56.5%), ahead of the United Kingdom (11.8%) and Germany (6.9%).

Top-selling backlist titles included Atomic Habits (James Clear), which has sold over 3.5 million copies; Green light (Matthew McConaughey), which sold nearly two million copies; and A promised land (Barack Obama). Popular novelties included How to avoid a climate catastrophe (Bill Gates) The judge’s list (John Grisham), Go tell the bees I’m gone (Diana Gabaldon) and three volumes of poetry by Amanda Gorman.

Bertelsmann said PRH, which improved its profit margin from 18.2% to 18.7% in 2021, “continued to invest in distribution and fulfillment logistics in 2021.” “This has allowed PRH to meet growing demand for its titles despite significant pandemic-related production and delivery bottlenecks, while providing more efficient delivery times for booksellers.”

PRH also advanced its “capture of consumer data to expand its direct-to-consumer marketing.”

Regarding the proposed acquisition of Simon & Schuster by PRH, Bertelsmann noted that the deal is still pending approval by US antitrust authorities. As previously reported by Books+Publishingin November last year, the Justice Department filed a lawsuit to block the acquisition, arguing that it would “cause substantial harm to the authors”.

Category: International news

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