Highlights

Total operating revenues for the book publishing industry amounted to $2.0 billion in 2010, down 2.7% from 2009. Operating expenses also showed a decline of 2.6% to $1.8 billion. As a result of the similar rate of decrease for operating revenues and operating expenses, the operating profit margin of 11.1% in 2010 remained relatively stable compared to 2009 (11.2%).

It is the first year since 2007 that the industry has shown a decline in operating revenues, operating expenses, operating profit and salaries, wages and benefits. The decline from 2009 to 2010 brings these variables below the 2007 totals at the Canada level.

Ontario accounted for 64.6% of the total industry operating revenues while Quebec accounted for 29.9%. Combined, they made up 94.5% of the total book publishing industry.

The largest operating expense for the industry was cost of goods sold at 35.2%, followed by salaries, wages and benefits at 21.1% and royalties, rights, licensing and franchise fees at 7.8%. These results remained relatively stable from 2009.

Book publishers in Canada primarily releasing English language titles had the largest share of total operating revenues at 77.8%. Publishers primarily releasing French language titles increased by 1.7%, over 2008, to represent 22.2% of the total industry.

In 2010, Canadian sales accounted for 72.3% of the total operating revenues while exports and other foreign sales made up 11.9%. Educational books generated the largest portion of the total national sales at 45.1% followed by other trades, all formats at 32.8% and children's books at 15.1%.

Sales in Canada of publishers' own titles for educational books showed an increase of 4.0% from 2008. Comparatively, sale by exclusive agents showed a decrease of 19.5% for the same type of book.

The country of control split for 2010 was 69.8% Canadian controlled and 30.2% foreign controlled. Canadian controlled establishments showed an increase of 1.2% over 2008 where they were at 68.6%. Since 2006, Canadian controlled establishments have continued to show an increase in operating revenues and profit margin.

Book sales by customer category remain relatively unchanged from 2008. Bookstores and other trade sales generated 38.6% of the total book sales in Canada. It was followed by educational institutions at 22.6%, exclusive agents, distributors or wholesalers at 17.5% and the general public at 9.5%.