The Bookseller.com

2nd December 2008

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Harper UK in hunt for growth

07.08.08 Philip Jones

HarperCollins UK chief Victoria Barnsley has revealed that the publisher is eyeing further strategic acquisitions, following its purchase of The Friday Project in April.

Speaking to The Bookseller following parent News Corp's full-year results, Barnsley said that the business was "always" considering acquisitions, though not just "for the sake of getting bigger" and only in the right strategic area, but added that she hoped to have something to announce in the next six months.

News Corp yesterday (6th August) reported that HarperCollins Worldwide had sales for the year ending 30th June of $1.4bn, up 3% on the previous year. However, during the last quarter of its trading year, revenues grew by 15.7% to $350m year-on-year.

UK figures were not available, but Barnsley said that a "fantastic" fourth quarter led by its children’s and education divisions had helped HarperCollins UK grow its full-year sales. Barnsley told The Bookseller: "HarperCollins had a great finish to 07/08, with our highest-ever revenues for the month of June. Coming off the back of a very successful 06/07 (due in large part to the great success of The Dangerous Book for Boys), we still grew the business this year which is a great achievement."

Barnsley said that the business had seen an increase in revenue over the year, but also recorded a slight dip in profit, due to its heavy investment in new digital products. "We have seen digital revenues grow 35% over the year, though obviously off a small base." She said revenue growth had come from licensing reference content, as well as subscription and advertising sales off its websites. "We look forward to seeing e-books join that over the next year." Barnsley said that she expected digital revenues to grow by at least 35% in the next year, but added that this would be at the expense of print sales within the rebranded Collins division, which had begun to slide.

Aside from digital, Barnsley said she would be looking for growth from its international divisions, following her promotion earlier in the year to head of the international units. Revenue and profit were up at the Australia and New Zealand divisions over the year, Barnsley said, with the group renewing its focus on these markets, as well as in emerging markets such as India.

In the UK, Barnsley added, the high street "seemed slow", and the wider economic climate was "concerning" but she was confident about her lists.

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