Bookseller: OUP results 2008 (original) (raw)
OUP resists rocky retail climate
Report by Catherine Neilan on OUP's annual report and accounts in The Bookseller, 18th September 2008
Oxford University Press has shrugged off the effects of the credit crunch to report healthy growth in the 2007/08 financial year, reducing its pension deficit and building its net assets by £62m to £238.1m.
Turnover rose from £453m to £492m, generating a net profit of £77.2m, up from £71.1m the previous year. Henry Reece, c.e.o. of the press, described the year as "strong", with "solid sales growth", adding that there was "clearly a risk that we will face tougher trading conditions in 2008/09". Reece said OUP's diverse geographic spread - with more than 80% of its sales coming from outside the UK - meant there was "a smaller exposure than other publishers to the specific markets that are currently experiencing economic downturns". He added: "In general, we're finding trading more difficult where we are more exposed to retail markets such as the US. But even here, the problem is limited to certain channels. Important as retailers will continue to be for us as a major route to market, retail sales aren't a dominant part of our business."
Tim Barton, former m.d. of OUP's UK academic division and current president of OUP USA, said traditional retail channels had experienced "disappointing sales" over the year. "The UK books market has been witnessing challenging times this year, with a number of key UK retailers and wholesalers struggling to show any significant growth," he added. Barton highlighted a "tough year" with Waterstone's after the store closures that followed its acquisition of Ottaker's, but commended Blackwell for "bucking the trend with a positive performance driven by a strong 'Back to University' season".
Overall, the UK saw "healthy growth" through online retailers, particularly Amazon and the library supply sector, with OUP sales of £82.3m for the year, up slightly from £79.5m the previous year. Europe recorded "very positive sales performances" within the academic division and in eastern European countries such as Russia, Poland and the Czech Republic "all performing ahead of the market", Peter Marshall, m.d. of OUP's ELT Division, said. Total turnover for the continental region was £140.9m. In the US, OUP saw growth thanks to such online products as Digital Reference Shelf and Oxford Scholarship Online, which had experienced "banner years". "The online reference programme is positioned for a milestone year," he said. "For the first time, sales of online reference products will overtake those of print."
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THE OXBRIDGE COLLEGE ACCOUNTS INDEX
THE SURPRISING TRUTH ABOUT OUP'S 'CHARITABLE STATUS'
THE HISTORY OF AKME AND OF THIS WEBSITE
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