Qatar turns to Harry for the magic touch

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Each week Arabian Business turns the spotlight on a leading company.

Is Harry Potter in Qatar?

Well... not exactly, but I guess you could get away with that. More accurately, the publishers of Harry Potter books, Bloomsbury Publishing from the UK have signed a deal with the Qatar Financial Centre Authority.

To supply the Qatar authority with Harry Potter books?!

Erm... no! Bloomsbury Publishing is basically creating a banking and finance information resource.

And what does that mean exactly?

Well, according to Nigel Newton, founder and CEO of the company, it means that a "definitive guide and reference to the financial world today, which will become a globally recognised print and online first point of reference for people involved in finance. From business leaders to students and all levels in between, will be developed". The forum is scheduled for launch in autumn 2009.

Why would a big publishing company like Bloomsbury step in that direction?

After its success with Harry Potter has begun to wane, the publishing company is looking for other deals. It is on the look out for acquisitions and signing up more best-selling authors as well as getting more involved in digital media.

How well is the company doing though?

Apparently, 2006 profits fell to US$10.5m from US$40.8m a year before. This was mainly attributed to there being no Harry Potter paperback title last year. And although the books proved to be a massive success and earned the author and the publishing company billions, this did not last. Bloomsbury's shares dropped almost 40% by the end of last year prior to the absence of a new title, which crimped its profits dramatically.

What is it doing about that?

The publication of the seventh (and last) installment back in July is bound to boost profits this time around. Numis media analysts are insisting on their ‘hold' recommendation on Bloomsbury, partly because of the doubts surrounding the company's diversification away from the Potter franchise. More encouragingly, Bridgewell Securities suggests that the company's reference rights deals also have the potential to help restore ground lost with last year's profit warning.

Has Bloomsbury signed any more deals recently?

Yes, it has. They include long-term reference rights deals with Oxford University Press, Microsoft and historic information business ProQuest, covering online versions of publications such as ‘Who's Who' and other web-based reference databases.

So is Potter history?

Not quite - Bloomsbury plans to get as much cash out of the world's favourite boy wizard as possible. Don't be surprised if you soon see boxed-set editions of the complete series, as well as special editions to coincide with the film releases of each title. What's more, you muggles will probably keep on buying them...

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