'The book' is not dead, says Quarto as profits jump 21%

16th Aug 2011 14:22

London-based book publisher Quarto saw shares fall lower on Tuesday despite seeing profits jump by 21% and reaffirming its confident outlook on 'the book'.The company reported that adjusted pre-tax profit for the six months ended 30 June rose from $1.2m to $1.4m. The firm made earnings per share of 0.6 cents, up from a loss of 0.9 cents previously.Half-year revenue rose from $68.9m to $72.5m. Book Publishing, its larger division, saw sales rise by 3% to $51.6m, helped by the first time contribution from gardening imprint Cool Springs Press acquired in February. International Co-Edition saw revenue increase by 12% o $21m.While the the "malaise" of Waterstone's (UK) and the collapse of Borders (US), Angus & Robertson and RED Group (Australasia) have sparked worries over 'the end of the book', Quarto's chairman Laurence Orbach thinks that this view is misguided."The travails of bricks and mortar book chains are real, but it is too facile to suggest that the book is dead [...] The loss of many bookstores will undoubtedly prove to be a massive challenge for book publishers. But, the numbers are now suggesting that more independent bookstores are opening than are closing," he said."Book publishing is an extraordinarily fertile industry, producing more new products each year than any other consumer products industry."Alongside its interim results, the firm revealed that it has bought British book published France Lincoln for $4.5m in cash, which is expected to double the size of Quarto's UK-based book publishing revenues.The interim dividend was maintained the same as last year at 3.35p per share.Shares dropped 2.41% to 121.5p at 2.39pm.BC