(Reuters) - Canadian retailer Indigo Books & Music Inc (IDG.TO) reported lower fourth-quarter revenue, hurt by a decline in book sales.
Canada’s biggest book seller said a C$165 million gain on the sale of its e-reader business, Kobo Inc, boosted net earnings attributable to shareholders to C$131.5 million, compared with a loss of C$19.4 million last year.
Rakuten Inc 4755.OS, a Japanese Internet services and e-commerce company, struck a deal last year to buy Kobo Inc from Indigo for $315 million, to expand its electronic book offerings.
Indigo’s loss from continuing operations in quarter was C$10.7 million, or 43 Canadian cents per share.
Revenue fell 2 percent to C$196 million as growth in its digital, gift, lifestyle and toy businesses was offset by lower sales of books.
Analysts on average were expecting a loss of 31 Canadian cents per share, on revenue of C$211.6 million, according to Thomson Reuters I/B/E/S.
Indigo’s shares, which have gained 10 percent in the last six months, closed at C$9.23 on Tuesday on the Toronto Stock Exchange.
Reporting by Maneesha Tiwari and Allison Martell; Editing by Andre Grenon and Viraj Nair