One would have thought that having Harry Potter in its midst would automatically boost a publisher’s fortune. But in the case of Scholastic, it’s just not so: though the company’s year-to-date revenues increased 13 percent, to $1,487.8 million, in the first nine months of fiscal year 2006, Scholastic reported a third-quarter net loss of $15.5 million, compared to $0.8 million in the same period a year ago, the Book Standard reports.
“Our third-quarter was disappointing, and based on our review of these results and their impact on the fourth quarter, we are reducing our outlook for the fiscal year,” said Richard Robinson, Scholastic’s chairman and CEO.
There were some bright spots: increased success in Canada and Australia and Harry Potter’s success did offset other losses in different sectors. But their bread and butter divisions — education and children’s book publishing — went down slightly in Q3. Book club promotions in schools were also a factor due to rising costs.