Barnes & Noble's Nook business falls under the bus, revenue drops by 32 percent

Barnes & Noble's Nook business falls under the bus, revenue drops by 32 percent

Summary: The bookseller's tablet division continues to see steep declines after it took a massive revenue hit during its fiscal second quarter.

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TOPICS: Tablets
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(Image: CNET)

Barnes & Noble's Nook business is not looking so healthy. 

For the company's fiscal second quarter, the online and brick-and-mortar book retail giant saw its Nook tablet and digital content division suffer a massive revenue drop in the three-month period, ended October 26. 

The Nook business generated $108.7 million in revenue — a decline of almost one-third, or 32 percent, on the same quarter a year prior. The company said the reason was down to "lower average selling prices and lower device unit sales." 

Digital content sales declined by 21 percent during the quarter. 

Besides the division's financial ding, Barnes & Noble is looking otherwise not so bad. 

The firm's quarterly revenue dropped by 8 percent across the board, but its net profit jumped to $13.2 million from just $501,000 on the same quarter a year earlier. The massive spike in profit is attributable to the company cutting costs to reduce its falling revenue. The company's college and retail units generated more than $120 million in earnings alone. 

Last year, Microsoft invested $300 million in a 17.6 percent stake in Barnes & Noble's tablet business following a long and lengthy patent dispute. Under the agreement, a new subsidiary was created that would see a Nook e-reading app developed for Windows 8

This week, the app will be expanded to Windows 8.1 in additional countries, including the U.K. and wider Europe.

Topic: Tablets

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4 comments
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  • That's a real shame. Seriously.

    I recently got the new Nook GlowLight e-ink reader, and I LOVE it! I compared it with the Amazon Kindle Touch, and decided the Nook was my favorite. It's too bad the B&N tablet business isn't doing well. It's needed to provide competition in the pure e-reader market.
    Userama
  • what the heck did MS invest in B&N for?

    I don't see anything going on there. Obviously it was just to keep them quiet.
    drwong
    • Read the article.

      "Last year, Microsoft invested $300 million in a 17.6 percent stake in Barnes & Noble's tablet business following a long and lengthy patent dispute. Under the agreement, a new subsidiary was created that would see a Nook e-reading app developed for Windows 8. "

      It was for an app.

      Also remember that while B&N isn't as big as Amazon, they're still pretty big.

      They've got IRL bookstores everywhere, whereas Amazon's the king of E-Books.
      ForeverCookie
      • B&N isn't as big as Amazon, but they're making 10 times as much in profits,

        so, why be big if you can't turn a profit?

        I'd rather run a mom-and-pop grocery store and make money, than create a giant corporation which gets huge sales and revenue, but still ends up losing money or taking in a tiny profit.
        adornoe