Bloomsbury Publishing Reports 22% Pretax Profit Fall Despite 5% Dividend Rise

Bloomsbury Publishing, known for the Harry Potter series, reported a nearly 20% decline in pre-tax profit to £32.5 million for the year ending February 2025, despite a revenue increase to £361 million that exceeded market expectations. The decline in profit was attributed to pressures in its academic division and UK and US budgetary constraints, although its consumer division saw a 3% revenue growth. The company’s acquisition of US academic publisher Rowman & Littlefield contributed significantly to revenue growth and operational efficiencies, with non-consumer sales rising 12% and academic and professional sales up 18%. Bloomsbury's digital arm also grew modestly, with digital resource sales increasing 2%, targeting £41 million in revenue by 2027/28. The board declared a 5% dividend increase, reflecting confidence despite profit challenges, and announced plans to expand further in Asia, including opening a new office in Singapore. While the company expects fiscal 2026 performance to be broadly in line with market consensus, investors remain cautious due to the uncertain macroeconomic environment and mixed outlook in academic publishing.