Bloomsbury forecasts record profit despite first-half revenue decline

Bloomsbury has expressed confidence that it will achieve record annual profits, attributing its outlook to upcoming releases and a new Harry Potter television adaptation, even after a recent drop in share price. The FTSE 250 listed publisher saw its shares fall by as much as eight per cent on Thursday morning, reaching 616p, following the announcement of a five per cent decrease in first-half revenue to 152 million pounds. Concurrently, pre-tax profit was halved from 18 million pounds to nine million pounds, a performance that initially concerned investors.

Nigel Newton, the founder and executive chairman, dismissed the interim figures as immaterial to the company’s overall financial health. He emphasised that the timing of major bestseller releases dictates whether revenue is recognised in the first or second half of the year. The group expects to generate the majority of its profit in the latter part of the year and remains on track to meet market expectations. Analysts have projected adjusted profit at a record 49.9 million pounds and total revenue at 354 million pounds for the full period.

A significant driver of this optimism is the release of HBO’s new television adaptation of the Harry Potter series, scheduled for Christmas Day. JK Rowling, whom Newton signed in 1996, created the original novels. Several major supermarkets have already placed orders for Bloomsbury’s new tie-in edition of Harry Potter and the Philosopher’s Stone. Newton described the streamer’s decision to launch the first episode on 25 December as a strategic move that will transform the festive season into a major event for the franchise. He predicted that the new edition of the first novel would become a significant bestseller ahead of the broadcast.

The publisher also anticipates a surge in sales from fantasy author Sarah J. Maas, who has sold more than 75 million copies worldwide. Two new novels by Maas are scheduled for release in October and January. Newton noted that when her previous book was published in 2024, she was the world’s biggest-selling author, and her fan base has continued to grow since then. Additionally, the company’s academic digital resources arm is contributing robust profits, further supporting the overall financial outlook.

Regarding corporate governance, Newton recently outlined plans to gradually retire from the business he founded. The firm intends to appoint a new chief executive within two years, with Newton transitioning to the role of non-executive chairman three years into that tenure. He stated that making this succession plan public removes uncertainty among stakeholders. Newton characterised the company as deliberate and slow-moving, preferring to make decisions carefully rather than in a rush.