While revenue increased 1% to £1.053 billion ($1.59 billion) at Penguin in 2012, profit at the publisher declined to £98 million, down 12% from £111 million in 2011.
The company attributed a challenged physical book trade, shrinking shelf space, the decline in ebook growth as well as a strong second half for its performance.
“We always knew that it would be tough to match Penguin’s remarkable 2011 results in 2012, but as we anticipated, our performance strengthened over the course of the year, culminating in an outstanding fourth quarter around the world,” said Penguin chairman and CEO John Makinson in a statement.
The statement continued:
Penguin’s 2012 full-year results were adversely affected by the comparison to these years of unprecedented growth—and externally by a challenging retail atmosphere, the continuing disappearance of physical shelf space, and a slowing growth rate in the sale of e-books.
Aside from its financial performance, 2012 was a big year for Penguin: It acquired author services and self-publishing platform Author Solutions for $116 million in July and is set to merge with Random House in the second half of the year to create what will be the largest book publisher in the world.