Harlequin’s Profits Suffer From Lowered US Dollar
By Jane • May 2nd, 2008 • Category: Publishing News • •Ann Bruce kindly sent me an article full of depressing news. Thanks, Ann. Harlequin’s profits are down 12% for the quarter. Harlequin is part of Torstar, an entertainment conglomerate headquartered in Canada. It usually is a “cash cow” but the forex effect (which needed to be explained to me because it sounded like something painful a woman would endure at the gynecologist’s office) is having a negative impact. Because the US dollar is declining in value against the Canadian dollar, the value of goods sold in the US is decreasing. The fluctuating currency exchange rate is not working in Harlequin’s favor.
Via Report on Business.
Jane is a long time romance reader whose passion is, you guessed it, reading. Jane also does not like to talk about herself in the third person, but apparently this is the way that this biography thing works (although in a true biography, someone else would be writing this blurb). Anyway, currently Jane loves urban fantasy authors Patricia Briggs and Ilona Andrews. She's really excited about this year's crop of historicals including Joanna Bourne's The Spymaster's Lady and Sherry Thomas' Private Arrangements and the upcoming Loretta Chase Her Scandalous Ways.
She's looking for a good contemporary author. Email her with a recommendation!
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I was just thinking the lower dollar should work in favor of an American company before you reminded us that, of course, Harlequin is a Canadian company.
The lovely effects of forex on the repatriation of profits. :-)
The depressed US dollar is also lowering profits of books sold in Canada since Harlequin has lowered the Canadian retail price to be more in line with the US. In the case of MIRA books, they’re at par.
Some other publishers *cough*Harper Collins*cough* have decided to strip off the US retail price off Canadian editions so they still charge Canadians a 30%-45% premium.
BTW, Sherry, PRIVATE ARRANGEMENTS is $6.99 in the US and $9.99 in Canada. I had to argue with Wal-Mart before they would sell it to me for the US price…plus 25% off. :D Hey, I was only making them comply with their own advertising.
LOL, I know. Prices for PA was set way back, before the dollar’s precipitous plunge. But I’m glad you made Wal-Mart cough up the forex gain for you. Those $3 are better off in your pocket. :-)