Harlequin Mills and Boon's parent company Torstar has reported a 18.7% growth in profit for the third quarter, with its publishing arm seeing "stable" sales.
EBITDA (earnings before interest, tax, depreciation and amortisation) for the group was $50.8m for the quarter ended 30th September, up 18.7% from the quarter last year. Revenue was $352.7m for third quarter, up $9m from the third quarter of last year.
Book publishing operating profit for the quarter was $23m, up $0.1m on the third quarter last year. The company stated that $1.4m of underlying growth offset a negative $1.3m from the impact of foreign exchange. Year to date profit is up $3m year on year.
Book publishing revenue was $117.5m in the third quarter, down $5m from $122,5m in 2009. Revenue for the year to date was $348.1m, down $23m from the same period last year. Excluding the impact of the stronger Canadian dollar book publishing revenues were up $6m year to date.
Torstar ceo and president David Holland said he was "pleased" with the results and called the results at Harlequin "stable". He added: "Throughout the business, we remain focused on free cash flow generation and reduction of net borrowings. In the quarter, net borrowings declined by
$30m to $450m. Year to date, net borrowings have declined by $65m."
Holland said: "At Harlequin, we have experienced very good results year to date but are wary of some indicators of weakness that are emerging in the U.S. market."