Barnes & Noble reported that its Nook business which includes devices, digital content sales and accessories, earned revenues of $153 million for the first quarter 2014, down 20.2% from a year ago.
Here is the breakdown from the press release:
Device and accessories sales were $84 million for the quarter, a decrease of 23.1% from a year ago, due to lower unit selling volume. Digital content sales were $69 million for the quarter, a decline of 15.8% compared to a year ago, due in part to lower device unit sales as well as the comparison to The Hunger Games and Fifty Shades of Grey trilogies. Excluding the impact of these two titles, digital content sales decreased 6.9%.
Despite stiff competition and revenue losses in the Nook business, Leonard Riggio, the company’s chairman explained that Barnes & Noble will not spin off its Nook business. “Right now our priority should be to serve the more than 10 million customers who own NOOK devices, to concentrate on building our Retail business, and to accelerate the sale of Nook products in our stores, and in the marketplace,” he stated.