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Barnes and Noble has Lost Over 1 Billion Dollars on Nook

25 February 2014

From Good EReader:

Barnes and Noble is a company in transition, when it comes to their floundering Nook Media division. In the last two months they have announced the departures of Jim Hilt – Vice President of eBooks, digital products director Jamie Iannone and VP of digital products Bill Saperstein. A myriad of other people have left, including the head of accessories and most of the hardware developers. The big reason these executives have left is primarily due to the fact that Nook Media has lost over a billion dollars since 2010.

Barnes and Noble is quite transparent when it comes to their financial earnings and hold nothing back from investor calls and their reporting. Normally, their end of the year reports come out every April and there is some bleak news. In 2011 the company lost 209 million, in 2012 they lost 261 million and in 2013 they increased the losses to 475 million. If we look at the quarter ending on July 27, 2013 they reported loses of 55 million and October 26, 2013 NOOK lost 45 million. If you add all of these figures together it comes to over 1 billion dollars.

Link to the rest at Good EReader and thanks to Mike for the tip.

Bookstores, Nook

10 Comments to “Barnes and Noble has Lost Over 1 Billion Dollars on Nook”

  1. Is that bad?

  2. Kozlowski may be the least coherent analyst in tech/publishing. I can’t even parse a few of those sentences (final sentence, third paragraph), and his timeline is off by years (Kindle predates Nook by a full 23 months at least). Also, wth is a spiting camel? Though I guess at least the “culling the herd” mentality is consistent with recent rhetoric.

    And it’s not great, but I don’t know that it’s bad. It’s worth thinking of Nook as a new business with the venture capital of B&N behind it. B&N had revenue of $7 billion (ish) for FY 2012. So it’s not great, no, but it seems like this is one of the ways corporations stay afloat. Consider that even if HarperCollins were to lose a billion dollars next year, that’s really very little compared to the revenue generated by its parent company NewsCorp.

  3. That is about 300 million per year. I believe their total annual revenues during that time were about six billion per year, so that is about five percent of revenues. Those are just ballpark figures, but they imply that Nook will be cut loose soon, at least to me. Which is ironic, because physical book sales are bound to be a declining business. So, I think the idea is to manage the decline as gracefully as possible.

  4. Wait… Barnes & Noble had a billion dollars?

    Wait… they had revenue of 7 billion dollars in fy 2012?

    Are we talking about the Barnes &Noble that sells books? Or a different one that sells battleships and missile installations?

  5. If you had one billion dollars, you and your heirs could spend $2 million dollars a year for 500 years.

    2Mx500 = 1000M = 1B at zero earned interest

  6. This is not the first and last time big corporations decide to take on something that they really don’t understand and to keep up with the competition, i.e. Amazon. Did Amazon lose money as well? Chances are that they did. But the difference between Amazon and B&N mentality is completely different. Think about it:
    -B&N considers $1B spent on Nook as a loss. Cut your losses short.
    -Amazon considers $1B spent on Kindle as an investment in the future. Digital is the future, pedal to the metal.
    Who won? The half glass empty, or the half glass full mentality.

  7. Year ending April 30 2010 NOOK EBITA: ?
    Year ending April 30 2011 NOOK EBITA: (209 million USD)
    Year ending April 30 2012 NOOK EBITA: (261 million USD)
    Year ending April 30 2013 NOOK EBITA: (475 million USD)
    Quarter ending on July 27, 2013 NOOK EBITA: (55 million USD)
    Quarter ending on October 26, 2013 NOOK EBITA (45 million USD)

    B&N will report the Nook segment EBITA for the Quarter ending January 26 2014 in 2 days.

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