BLOOMSBURY Publishing Plc, the publisher of the Harry Potter novels, said earnings in 2007 were ahead of analysts' estimates because of higher sales in the United Kingdom and Germany.
The London-based company said in an e-mailed statement: "2007 trading was better than expected. 2008 is off to a good start."
The publisher didn't give details of estimates.
Bloomsbury expanded in Germany and the United States last year and invested in online businesses and film publishing, anticipating publication of the final Harry Potter book in July. "Harry Potter and the Deathly Hallows" became the fastest-selling book in UK history after selling 2.65 million copies in the first 24 hours of its release.
"The drivers for 2007 are broadly spread across Harry Potter and other titles which is encouraging," Steven Liechti, an analyst at Investec, wrote in a note to clients yesterday, reiterating a "buy" recommendation on the stock.
Bloomsbury rose as much as nine pence, or 5.8 percent, to 163 pence in London trading yesterday, valuing the company around 117.7 million pounds (US$231 million).
The company probably earned 15.2 pence a share last year, according to the average estimate of six analysts compiled by Bloomberg News. Bloomsbury earned 4.9 pence a share in 2006.
Bloomsburg said sales in 2007 were helped by titles, including "The Kite Runner" by Khaled Hosseini, "Cranford" by Elizabeth Gaskell and continued re-orders of the Harry Potter series.