Skip to main content

Indigo Books & Music Inc. 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 $11.7-million, or 47 cents a share for the three months ended April 2.

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

Story continues below advertisement

The company, which is spending heavily to tap into the trend of reading books on smartphones, tablets or notebooks, paid $21.8-million in financing charges and interest during the quarter. That compared with charges of $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 Galaxy Tab and Research In Motion's PlayBook.

Kobo raised $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 per cent to $211-million in the fourth quarter, partly because the company lacked a hit equal in success to last year's Twilight trilogy.

Report an error
Comments are closed

We have closed comments on this story for legal reasons. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

Combined Shape Created with Sketch.

Combined Shape Created with Sketch.

Thank you!

You are now subscribed to the newsletter at

You can unsubscribe from this newsletter or Globe promotions at any time by clicking the link at the bottom of the newsletter, or by emailing us at