June 7 , 2011
Indigo's annual revenue exceeds $1 billion
Strong digital business contributes to growth
Indigo Books & Music Inc., Canada's largest book, gift and specialty toy retailer reported a five percent increase in revenue for its fiscal year ending April 2, 2011 . Revenue for the year was $1.017 billion compared to $969 million last year. The Company noted that this year had one fewer week than last year.
Commenting on the results, CEO Heather Reisman said, "We are pleased with our revenue growth, particularly given the significant transition going on in our industry. Consumers have embraced our Kobo eReader and eBook offerings and we are thrilled to be at the forefront of an emerging global industry."
Net earnings for the year were $11.3 million , down $23.6 million from last year "The reduced profit was expected as we continue to invest in the growth of Kobo and the establishment of the Indigo Lifestyle proprietary product design and development capability."
Revenue for the fourth quarter was $211 million , down $17.6 million from last year. The Company noted that there was one less operating week in the quarter this year compared to last and no hit equal to the runaway success of the Stephenie Meyer Twilight trilogy. On a normalized 13 week basis, revenue for the quarter was down $2.3 million or one percent. Net loss for the quarter was $11.7 million compared to a profit of $0.5 million last year.
During the fourth quarter of fiscal 2011 and the first quarter of fiscal 2012, Kobo raised $50 million in additional funding from investors including Indigo which retains its majority ownership of the burgeoning eReading company. Just after the close of the quarter Kobo also launched its most advanced eReader - the Kobo eReader Touch Edition.
In Q4, Indigo rolled out a new free plum rewards loyalty program which provides points for redemption on almost everything purchased in store as well as preferred pricing at indigo.ca. The program encompasses every business category, rewarding more customers for their patronage along with robust personalized recommendations and relevant offers.
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