The education-focused publishing company seemed subdued today, less than a week after the tragic school shootings in Connecticut. In a conference call with analysts to discuss earnings, Scholastic CEO Richard Robinson expressed sympathy for families of the murdered students and teachers. He also urged schools to continue to promote “optimism and hope,” while officials provide the “mental health resources our schools must have.” As for the financials: Cost savings helped, but weren’t enough to overcome declining sales of The Hunger Games trilogy and other disappointments. Shares are down 2.8% in early trading after Scholastic reported net income of $61.8M for the three months that ended in November, -25.4% vs the period last year, on revenues of $616.2M, -10.1%. Analysts expected revenues of about $632.5M. Earnings, at $1.89 a share, also fell short of the $2.05 that the Street anticipated. Hurricane Sandy took a toll: many schools closed and cancelled book fairs featuring Scholastic’s titles. In addition, school districts held off buying the company’s highly profitable education technology products as they invested in training teachers to handle the new Common Core State Standards, a state-led initiative to establish national educational benchmarks. The company says that it expected some decline in Hunger Games sales vs last year when excitement was building for the Lionsgate film released in March. But Scholastic didn’t see the sales bump it anticipated after the home video was released in August. Execs say that they will work with Lionsgate to gin up book sales around the November release of the second film, The Hunger Games: Catching Fire.


This is ridiculous. How can a company compete against itself with a phenomenal hit like that. Wha? They made a few hundred million less than last year? Really? When did making 600 million dollars a year become a failure?
Hits like Hunger Games only come around once every great while. The greed and demand of stockholders to always see an increase has created a fear-based economy that affects the quality of projects and originality.
The real revolution is happening in indie authors and filmmakers that take their own financial risk, find their own audience and hold out long enough for the Big fish to chuck enough money at them that they can’t say “no” too. These same big fish that are desperate for a hit, ravenously foaming at the mouth for something to appease their stockholders before their heads go on the chopping block.
It’s ironic to talk about the school shooting AND The Hunger Games which promotes kid on kid violence….
just sayin’…..
While IMO it’s lunacy to try toeven suggest any causal link between The Hunger Games and this catastrophe, it *is* an unfortunate coincidence that Suzanne Collins is from the Sandy Hook area of Newtown, CT.