Yesterday, Scholastic (NASDAQ:SCHL) reported a first-quarter revenue increase of 55% to $475.4 million. Thank you, Harry Potter.
Since J.K. Rowling's Harry Potter and the Order of the Phoenix was released on June 21, Scholastic has sold 11 million copies. Within the first 24 hours, the book sold a record 5 million!
With the latest, Harry Potter books added $170 million in revenue to the latest quarter. By comparison, the young Potter accounted for a mere $15 million in last year's quarter.
Elsewhere, educational publishing revenue was up 20% to $106.8 million largely on sales to classroom libraries in New York City and other public school systems. Sales of the READ 180 intervention program and the Scholastic Early Childhood Program in Texas also contributed.
All told, in a seasonally weak quarter (schools are typically not in session), the company's net loss improved to $24.8 million, or $0.63 per share, from a loss of $44.6 million a year ago.
That Harry Potter resonates with adults as well as with kids is not lost on Scholastic. Following on yesterday's earnings, the company announced this morning a new print-ad campaign targeting adults ages 18 to 35.
With Harry Potter's magic touch, Scholastic is a sure bet to succeed.
You can reach Jeff Hwang at [email protected].
