Addition to newly formed Christian division helps lift revenue to near pre-recession levels

The acquisition of Thomas Nelson is the main driver of the 15% increase in revenue for HarperCollins in the fiscal year ending June 30. HarperCollins finalized the purchase of Nelson in July 2012.

Revenue and earnings for the publisher were $1.37 billion EBITDA (earnings before interest, taxes, depreciation and amortization), up from $1.19 billion EBITDA the previous fiscal year. This brings the company’s income nearly to pre-recession levels.

While Nelson and the creation of the HarperCollins Christian umbrella—which also includes Zondervan, part of HarperCollins since 1988—are cited as the primary drivers of increased revenue, the growth of e-books also played a role. The publisher’s e-book sales accounted for 19% of revenue in the fourth quarter of fiscal year 2013, up from 16% the year before. Lower manufacturing costs from increased digital sales as well as greater synergies in the Christian division were also key components. Gains were offset somewhat due to HarperCollins leaving the third-party U.S. distribution business as well as charges from Canadian and Australian operations.

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