May 31, 2011 / 8:33 PM / 7 years ago

UPDATE 2-Digital investment pushes Indigo Books to a loss

* Q4 loss C$0.47/shr vs EPS C$0.02

* Revenue falls 8 pct to C$211 mln

* Finance charges soar to C$21.8 mln

TORONTO, May 31 (Reuters) - Indigo Books & Music Inc (IDG.TO) slid to a loss in the fourth quarter on heavy charges for investments in its digital business such as its Kobo e-reader, results showed on Tuesday.

Canada’s biggest retailer of books, electronic books and e-readers said earnings fell to a loss of C$11.7 million ($12.06 million), or 47 Canadian cents a share for the three months ended April 2.

That compared with earnings of C$497,000, or 2 Canadian cents a share, in the same period a year earlier.

The company, which is spending heavily to tap into the trend of reading books on smartphones, tablets or notebooks, paid C$21.8 million in financing charges and interest during the quarter. That compared with charges of C$936,000 in the same period a year ago.

E-reading service Kobo, which was spun off in late 2009, but in which Indigo is still the majority shareholder, comes pre-installed on devices such as Samsung’s (005930.KS) Galaxy Tab and Research In Motion’s RIM.TO PlayBook.

Kobo raised C$50 million in funds from investors earlier this year to speed up its expansion and new product development.

Indigo said its revenue fell nearly 8 percent to C$211 million in the fourth quarter, partly because the company lacked a hit equal in success to last year’s “Twilight” trilogy.

$1=$0.97 Canadian Reporting by Nicole Mordant; editing by Rob Wilson

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below