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.