Publisher Bloomsbury (BMY) has smashed profit expectations in the six months to 31 August as the Harry Potter series continues to enchant readers.
Numis analyst Paul Richards says adjusted pre-tax profit of £2.5m was ‘well ahead’ of his £1.4m forecast. How much bearing this will have on the full year outcome, which is typically hugely second half weighted because of Christmas, remains to be seen.
Overall sales rose 15% to £72.1m. Its biggest Consumer division saw sales growth hit 20% to £44.7m, in large part thanks to a bumper schedule of popular children's titles.
Children's sales jumped 33% as readers snapped up house editions of Harry Potter and the Philosopher’s Stone on its 20th anniversary, as well as A Court of Wings and Ruin by Sarah J Maas.
Net cash rose from £9.1m a year ago to £16.9m.
NEW PLANS FOR POTTER FANS
The publisher is planning to further take advantage of the Harry Potter series by releasing an illustrated edition of Harry Potter and the Prisoner of Azkaban and Fantastic Beasts and Where to Find Them titles.
Investec analyst Steve Liechti is confident in Bloomsbury’s outlook, increasing his earnings per share (EPS) estimates by 2.5% to 12.6p in 2018 and 13.7p in 2019.
For context, Bloomsbury reported EPS of 15.2p in full year 2016 and 12.6p last year.
Liechti says non-consumer sales momentum is good at 8% despite a drag from the company’s 2020 digital resources growth strategy.
Bloomsbury 2020 aims to focus on non-consumer publishing for the business to business academic and professional information market.
Shares in Bloomsbury are up 2.2% at 165p.
