When Penguin Publishing House goes bankrupt, why is a book about dinosaurs in its last week still a bestseller?
Penguin Publishing has sold more than half of its print and digital books in a week, marking the end of a long period of book sales declines that have pushed the publisher into bankruptcy protection.
The Penguin Group’s online business is expected to post an operating loss of $2.8 billion in the third quarter, up from $1.7 billion a year earlier.
Penguin has seen sales decline across the board, with the company reporting a net loss of nearly $2 billion on revenue of $14.9 billion.
But that does not account for the millions of dollars in royalties the publisher pays to authors and publishers.
According to Penguin’s latest annual report, “Our quarterly profit and loss accounts for the majority of the total cost of operations.”
The company’s quarterly profit, which includes all of its publishing and licensing businesses, amounted to $6.5 billion, a loss of more than $800 million.
The losses stem from the recent sale of more of its titles to Amazon, which has now been the publisher of more Penguin titles than any other company.
According the report, the publisher’s net income of $4.6 billion is a 1.4 percent decline from the previous quarter, and the decline is even larger when one considers that Amazon’s digital revenue has fallen more than 60 percent in a year.
“In our view, it is fair to say that Penguin Publishing is on track to post a loss in the next quarter,” said CEO Simon Baron-Cohen in the company’s annual report.
“The loss is expected, however, to be substantially less than the previous quarterly loss and, while we believe this loss is not sustainable, we expect it to be significant.”
Baron-Chen says the company will be able to recoup its losses through a combination of tax deductions, debt restructuring and some kind of capital raise.
But some readers may be concerned that the book is still a contender for bestseller status.
The book, “The World’s Greatest Book,” is a popular children’s book that has been available in English, French and German since the early 1970s.
Its publisher, Penguin, bought the book in 2003 and began releasing it into the English-language market.
The latest edition was released in March 2018.
The publisher has been struggling to find new readers, and sales have fallen precipitously since then.
Sales fell by more than 85 percent from the first half of 2017 to the second half of 2018, and are now down by more half a percent to 5.1 million copies.
Penguin CEO Simon Barrett recently acknowledged that the publishing industry is “ailing” and said that a combination would help to “resurgent our industry.”
Penguin Publishing also has a history of financial troubles.
The company has struggled to maintain its profitability in the past, with its stock falling by more to 15 percent in 2015.
The loss has led the publisher to declare bankruptcy protection in April.
“Penguin Publishing has made many costly decisions that have affected its ability to survive, and we continue to work hard to keep it in business,” Baron-Baron-Cohens said in the quarterly report.
The collapse of Penguin Publishing could have dire consequences for many authors.
“It’s very clear that publishing is a big business,” said Robert Bauval, president of the Association of Authors and Publishers.
“Publishers are going to need to take some significant risks in order to survive.
This is going to be a tough time for many publishers.”
For example, many publishers rely on royalties from books sold to libraries, where they can keep books off their bookshelves for long periods of time.
But many authors who earn a living through a career, like writers and artists, also struggle financially.
And authors and readers are often hesitant to sell books they may have already read.
“We’re in a world of uncertain times,” Bauvalsaid.
“I hope publishers have learned their lesson and learned that there’s a better way to go about it.
It is our hope that the Penguin Publishing Group and the publishing community can come together to find a solution that is sustainable and fair for all of us.”
SOURCE: CBS News, Penguin Publishing, Penguin Group, Penguin Authors Association, Penguin Publishers Association, Publishers Association of the United States