Bookstore chain and Nook eReading software provider Barnes & Noble has reported 2.5% rise in its revenues to $1.5bn in first quarter (Q1) of fiscal 2013, when compared to the same period last year, boosted by market consolidation and strong sales of the Fifty Shades of Grey series.
Net loss of the firm declined 28% during the period to $41m or 78 cents per share, when compared to $56.6m or 99 cents per share, it lost during the same period the earlier year.
Barnes & Noble chief executive officer William Lynch said during the first quarter, the company’s NOOK business reported 46% rise in digital content sales and its book stores continued to benefit from market consolidation and strong sales of the Fifty Shades series during the quarter.
"The growth in comps at retail and the continued strong growth of our digital content business, as well as increased cost management focus, were drivers in the business turning from an EBITDA loss last year to slightly positive EBITDA in the first quarter of this year," Lynch said.
Retail earnings before interest, taxes, depreciation and amortisation (EBITDA) of the firm reported 88% rise to $75m during the first quarter when compared to $40m during the same quarter the previous year.
The New York-based chain reported that it had reduced its selling and administrative charge during the quarter along with its interest expenditures.
The Retail segment, which consists of the Barnes & Noble bookstores and BN.com businesses, had recorded a revenue of $1.1bn for the quarter, increasing 2% over the prior year.
The College segment, which consists of the Barnes & Noble College bookstores business, had recorded a revenue of $221m during this non-back-to-school rush period, the company said.
The NOOK segment, which consists of the company’s digital business (including Readers, digital content and accessories), had revenues of $192m for the quarter, remaining flat compared to the corresponding quarter last year.
The company is also planning to reduce the price for the 8GB Nook tablet to $179 from the current $199, the Kindle Fire, with 6GB for $199, while the 16GB Nook tablet will be offered at $199 from its earlier price of about $249.
This article is from the CBROnline archive: some formatting and images may not be present.
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