B&N Nook Revenues Fell 32% In Q2 - Twice

B&N Nook Revenues Fell 32% In Q2

New York – Revenues at Barnes & Noble’s Nook business fell in the second quarter and first half, but EBITDA losses shrank in both periods compared to the year-ago periods.
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New York – Revenues at Barnes & Noble’s Nook business fell in the second quarter and first half, but EBITDA losses shrank in both periods compared to the year-ago periods.

 The Nook business segment consists of the company’s digital businesses, including digital content, devices and accessories.

Nook revenues fell 32.2 percent to $109 million in the second quarter ending Oct. 26 and were down 25.7 percent in the first half to $261.9 million. The segment’s EBITDA losses shrank 11.8 percent in the quarter to $45 million because of lower device markdowns and reduced expense, the company reported. The segment’s first-half EBITDA losses shrank by 7.6 percent to $99.8 million

 Also in the quarter, the segment’s digital content sales fell 21.2 percent to $57 million because of lower average selling prices and lower device unit sales, the company said. Device and accessories sales, including e-readers and tablets, fell 41.3 percent to $51 million for the quarter because of lower unit sales and lower average selling prices.

Revenues at the company’s retail segment, consisting of the Barnes & Noble bookstores and BN.com, fell 7.5 percent to $921 million, and revenues at the college bookstore segment fell 4.6 percent to $738 million. Both segments posted EBITDA income.

On a consolidated basis, total revenues were off 8 percent to $1.73 billion, but net income grew to $13.3 million, up from a year-ago $501,000.

For the first half of the 2014 fiscal year, however, the company posted a net loss of $73.8 million, up 88 percent from the year-ago loss of $39.3 million.

During the half, Barnes & Noble bolstered earnings “through improved margins and reduced expenses, while also completing another successful College rush season,” said president Michael Huseby.

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