Penguin Random House Booms in 2013, Growing Revenue, Profit
Penguin Random House had €2.7 billion ($3.7 billion) in revenue in 2013, which includes a full year of Random House revenues and half a year of Penguin revenues.
The company discusses the results:
This year-end consolidated revenue of €2.7 billion for the combined company reflects a full year of Random House, including Germany’s Verlagsgruppe Random House, and a half-year of the Penguin Group. Total sales were 23.9 percent above Random House’s previous year’s revenue (€2.1 billion). Adjusted for currency and portfolio effects, revenues decreased compared with the record year 2012, which was dominated by the exceptional success of the “Fifty Shades” trilogy. Operating EBIT fell 4.9 percent from the high level of the previous year – partly due to depreciations in connection with the initial inclusion of intangible assets at Penguin – to €309 million (previous year: €325 million). Return on sales came to 11.6 percent (previous year: 15.2 percent). Operating EBITDA increased to €363 million (previous year: €352 million). As a result, the EBITDA margin was 13.7 percent (previous year: 16.4 percent). At the end of the year, Penguin Random House had 11,838 employees (December 31, 2012, Random House: 5,712).
Despite no Fifty Shades for PRH in 2013, the company managed to keep its profit margin above 10% and actually increase its earnings before interest, taxes, depreciation and amortization (EBITDA, a measure of profit) over the prior year.
The company also announced that it sold 100 million ebooks in 2013 worldwide.
See the company’s full report here.