Fuelled by the success of Kobo, Indigo manages to boost revenue in the face of declining print demand

Posted by Knowlton Thomas

As demand for printed books and magazines wanes, Toronto's Kobo e-reader sparked a rise in revenue for Canada's Indigo Books & Music.

The revenue boost is small at $1.02 billion this year compared with $970 million last year, and profit actually declined into a minor loss—but taking a look at companies like Barnes & Noble shuttering store after store makes stagnant financials a positive in this industry.

"We are pleased with our revenue growth, particularly given the significant transition going on in our industry," says CEO Heather Reisman. "Consumers have embraced our Kobo eReader and eBook offerings and we are thrilled to be at the forefront of an emerging global industry. 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."

In 2011, Kobo raised $50 million in funding from investors, including Indigo, which sought to retain its majority ownership of the ereading company. Kobo recently launched a new product as well, its Touch Edition ereader. Indigo attempted to adapt to a rapidly changing landscape with its new plum rewards loyalty program.

Kobo will need to continie its trajectory of success to keep its mother, Indigo, alive.

Company:
Indigo Books & Music Inc.
Website:
http://www.chapters.indigo.ca
Location:
Toronto, Ontario, Canada

Indigo Books & Music Inc. is the largest book retailer in Canada operating bookstores in all 10 provinces under the names, Indigo, Chapters, World's Biggest Bookstore, and Coles. Indigo also operates chapters.indigo.ca an online retailer of books, music, movies, and more. A Canadian company based in Toronto, Ontario, Indigo provides consumers with inspiring retail and online environments for books and life... more

Company:
Kobo, Inc.
Website:
http://www.kobobooks.com/
Location:
Toronto, Ontario, Canada

Kobo is a global eReading service backed by majority shareholder Indigo Books & Music, Borders Group, REDgroup Retail, and Cheung Kong Holdings. Kobo believes consumers should be able to read any book on any device. With a catalog of over two million eBooks, and an open platform, Kobo enables retailers, device manufacturers and mobile operators to bring the joy of eReading to customers everywhere. For more... more


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Knowlton Thomas

Knowlton Thomas

Knowlton is the managing editor of Techvibes. Based in Vancouver, Knowlton has been published in national publications and has also appeared on television and radio. Previously he was an editor for New Westminster weekly The Other Press and served on its board of directors. When not working, Knowlton enjoys playing tennis, hiking, and exploring weird side streets. more



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