- Fantasy and sci-fi demand lift sales
- Revenue of £291.4 million expected
- Shares gain 7% to new life-high
Shares in Bloomsbury Publishing (BMY) were up over 7% to a new all-time high of 527p in morning trading as the book publisher said it expected revenue and pre-tax profit to be ‘significantly ahead' of upgraded market expectations for the year ending 29 February 2024.
The book publishers’ board expects revenue of £291.4 million and pre-tax profit and ‘highlighted items’ of £37.2 million.
ENDURING FANTASY AND SCI-FI DEMAND
The Harry Potter publisher attributes the profits upgrade to its consumer division and the publication of the Sarah J. Maas fantasy novel House of Flame and Shadow on 30 January which ‘delivered exceptional growth.’
Nigel Newton, Bloomsbury chief executive, said: ‘I am overjoyed to report an exceptionally strong period of trading, principally driven by the increasing demand for fantasy fiction. Sarah J. Maas is a publishing phenomenon, and we are extremely fortunate to have signed her up with her first book 13 years ago.
‘Her books have a huge audience which continues to grow backed by major Bloomsbury promotional campaigns, driving strong word of mouth recommendation, particularly through TikTok and Instagram channels.’
The latest novel reached the top spot in UK, Australia, US, and many other global markets, and the company said it had also driven demand for her previous 15 books which Bloomsbury published around the world.
According to Nielsen Bookscan, the fantasy and sci-fi genre in the UK has grown by 54% in the last five years.
Another bestselling fantasy author Bloomsbury publishes is Samantha Shannon, and the company said it would be investing further in the genre with its newly-launched general list.
Bloomsbury profit and revenue to beat expectations as reading boom continues
The publisher also took the opportunity to announce a new president of Bloomsbury US, Sabrina McCarthy, who starts at the beginning of April. McCarthy will also serve on the Bloomsbury’s global executive committee.
Bloomsbury will provide further details for the results year ending 29 February 2024 on 23 May.
EXPERT VIEW
AJ Bell investment director Russ Mould said: ‘Bloomsbury’s latest trading update shows a business enjoying strong momentum. Covid lockdowns rekindled people’s love of reading and, unlike many other past times, this one seems to have stayed popular as the pandemic is confined to the rear-view mirror.
‘The sign of a clever publisher is recognising talent early on and signing up authors who go on to produce a rich library of books. Bloomsbury has dined out on JK Rowling’s Harry Potter series for a long time yet success with other titles shows it is not a one-trick pony.
‘Importantly, Bloomsbury is also active in educational publishing which provides revenue diversification. Just over two years ago it bought a business called ABC-CLIO to strengthen its position in digital academic resources, including a big presence in the US high school library market. It also has an academic streaming content platform which provides students with access to a wide range of subjects to support their learning.’
DISCLAIMER: Financial services company AJ Bell referenced in this article owns Shares magazine. The author of this article (Sabuhi Gard) and the editor (Ian Conway) own shares in AJ Bell.
