WASHINGTON: US-based Scholastic Corp said revenues rose 5.6% in the third quarter, although international sales (including the UK) fell because of poor foreign exchange rates.
For the three-month period ending 29th February 2016, total revenues totalled $366m (£257m), compared to $347m (£244m) for the same period in 2015. Excluding the foreign exchange impact, sales would have risen more than 8%.
The company also cut its net loss from $22m (£15m) to $9m (£6m). Scholastic attributed the strong results to sales in children’s books and educational materials in the US, including Harry Potter titles such as the illustrated edition of Harry Potter and the Sorceror’s Stone and Harry Potter colouring books. Total revenues from the US-based book publishing and distribution group rose 4% in the quarter to $220m (£155m).
Richard Robinson, chairman and c.e.o., said: “We were very pleased with our third quarter performance and continued strong execution in our children’s book and education businesses, where our creative content and distribution channels continue to bring the power of reading to children in their classrooms and at home.
“We are well positioned for further growth in children’s books with a strong execution in our children’s book and education businesses, where our creative content and distribution channels continue to bring the power of reading to children in their classrooms and at home.”
In the international division the “major markets” of the UK, Australia and Canada experienced year-on-year growth but overall revenues fell 4% in dollar terms because of negative exchange rates.
Asian operations were “on par” with last year’s third quarter results in local currency. In terms of future growth, Robinson said the company is investing in building a “growing frontlist of exceptional titles, authors and licensed properties”. It is also building a new office and retail space in New York.
