Bloomsbury Publishing plots expansion into B2B market

Harry Potter publisher Bloomsbury Publishing held a capital markets day for investors and analysts on Wednesday to present plans to enter the business-to-business market, while also confirming first-quarter trading remained in line with full year expectations.

Bloomsbury unveiled its 2020 growth plan that will see the company drive digital revenue over the next five years by widening its consumer publishing remit into non-consumer publishing, with more of a focus on business-to-business (B2B) academic and professional information market.

Bloomsbury, one of the UK's big five publishers, also revealed that total revenue was up 9% year on year for the three months to 31 May, driven by children’s publishing within its consumer division.

Sales for digital resources were up 97%, while traditional sales in the first quarter tend to generate the smallest profit than any quarter.

Bloomsbury also said it anticipates a £500,000 increase in profits in Australia from the start of the start of 2017 financial year, as it saves on sales commissions payable against the cost of in house key account managers.

The FTSE main market-quoted company said it will continue with its existing sales and distribution partners in Australia and New Zealand, as the contract is due to end on 31 December, but will take responsibility for selling to head office accounts of customers which comprise about half of Australian and New Zealand sales, which it expects to lead to the increase in profit.

Eight new titles have also been acquired from bestselling US novelist Sarah J. Maas, in a deal which includes six new titles in the A Court of Thorns and Roses series series and two in the Throne of Glass series. The combined series have sold over 3m copies.

The publisher said it also acquired worldwide online education platform rights for the two series of BBC film adaptations of Shakespeare's history plays The Hollow Crown, which will be streamed through its academic subscription service Drama Online later in the year, which will double video content in the channel.

Shares in Bloomsbury Publishing were up 3.18% to 162p at 1339 BST.