I can't find the old post, but I think somebody called...

I can't find the old post, but I think somebody called management, who said that the average margin of the industry is higher than that.

And another quote that I have "85% of non publisher / bookseller costs are fixed". So I'm thinking any improvement in revenue will go almost straight to margin.

By the way, this is my own summary of expenses relative to receipts (on a rolling 4 periods basis, to remove the quarterly fluctuations) -



So for the 4 quarters ending Q320, expenses had come down to 117% of receipts (expenses relative to revenue should be better still). It seems to be trending in the right direction, so if it's right that they have a lot of fixed expenses, then any further improvement in revenue/receipts should keep this trend going.

I'll be updating that after the quarterly.


When you say their margin on books is 15%, what does that mean? That for $10m of receipts, they'd have to pay like $8.5m out in book fees? Only keeping $1.5m for other expenses?

This is my Rolling 4 Periods Product Operating Costs relative to receipts -



Seems to be trending in the right direction. I think book costs should fall under POC (since it's the only large expenses category other than staff).


Did the presentations provide a breakdown of revenue? This?


So how does this work out? Ebook sales being high at 78% of sales revenue, but Product Operating Costs being just 35% of receipts (for the rolling 4 periods to Q320). If the margin was small, wouldn't these 2 numbers be a lot closer?