Q3 Interim Management Statement

RNS Number : 0297Q

Quarto Group Inc

01 November 2012

 



For Immediate Release

1 November 2012

The Quarto Group, Inc.

("Quarto" or the "Company")

Q3 Interim Management Statement

Quarto (Full List: QRT.L), one of the largest international co-edition book publishers based in London, announces its Q3 Interim Management Statement for the period ended 30 September 2012.  

Trading update

Quarto's performance for the 9 months and 12 months to September 30, 2012 continues to be in line with expectations.

Subdued trading continued in Q3, with some improvement in September. In general, both in the co-edition and the book publishing segments, a level of stability seems to have been reached. Following the response to our products at the Frankfurt Book Fair in October, we noted that licensees and distributors around the world are largely adjusting to a world in which online retailing and digital books have challenged long-entrenched business models.

2012 digital sales have climbed to 1.7% of total revenues at $2.225 million (2011: $1.455 million). In all English-language markets, traditional bookstore revenues are under pressure. By and large, all the major bookstore chains have embraced digital readers, but remain somewhat ambivalent about how to integrate them into their bookselling missions.

In Australia, we continue to have a powerful entrée in selling books through our Lifetime subsidiary, which is the runaway national leader there in display marketing of books. Lifetime was in a fragile state when acquired in 2004 and, thanks to the rigor and disciplines installed under Quarto's management, is possibly the most profitable company of its type in the world.

On the trailing twelve months' basis (used to eliminate seasonal trends), most of the publishing imprints are showing improved performance, with the notable exception of our home improvement and transportation lists. In co-edition, Jacqui Small, Qu:id, and Quintessence continue to outperform. The World of Fine Wine, after winning yet another award as the finest wine magazine, increased its profit and revenue.

Unaudited results, before amortization of non-current intangibles and non-recurring items, for the nine months to September 30, 2012:

Nine months to September 30 ($'000)	Results
	2012	2011
Revenue	127,237	130,745
EBITDA	24,338	24,752
Operating profit	9,426	9,449
Profit before taxation	5,532	6,046
Trailing twelve months to September 30 ($'000)	2012	2011
Revenue	182,618	182,463
EBITDA	36,902	37,088
Operating profit	16,712	16,642
Profit before taxation	11,592	12,002

For further information please contact:

The Quarto Group, Inc. Marcus Leaver (COO)	020 7700 9004
Laurence Orbach (Chairman and CEO) Mick Mousley (CFO)
Buchanan	020 7466 5000
Mark Edwards Louise Hadcocks

 

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