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Big Quarter For HarperCollins

By Jim Milliot — Publishers Weekly, 2/2/2010 3:16:00 PM

HarperCollins’ bet on Sarah Palin paid off over the holidays as Going Rogue helped to drive sales for the publisher in the quarter ended December 31. Total revenue in the period rose 25%, to $381 million, and operating profits jumped to $65 million from $23 million. Comparisons were helped by the fact that the fourth quarter in calendar 2008 was one of the worst at HC in several years, with revenue falling 25% and profits plunging 66%. Despite the turnaround, CEO Brian Murray said he remained cautious about prospects for the year. “I’m still worried about retail, and consumer spending in general,” Murray said.

The improved results in the most recent quarter put sales and earnings close to where they were at the end of the 2007 holiday season. Last year’s poor fourth quarter was followed by a significant downsizing at HC a little over one year ago. Among other actions, the Collins division was integrated back into the general books group and Brenda Bowen’s imprint was closed. HC said the increase in profits was driven by higher revenue, improved margins on sales and lower costs.

In addition to Rogue, which has 2.8 million copies in print, other titles that did well in the quarter included Where the Wild Things Are, which benefited from the release of the movie, The Vampire Diaries, The Lacuna, Pirate Latitudes, SuperFreakonomics and Fancy Nancy: Splendiferous Christmas. E-book sales continued to do well and accounted for about 5% of adult sales in the quarter.

For the first half of fiscal 2010, revenue at HC was up 11%, to $691 million, and operating income jumped over 200% to $85 million

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Elvin Lim is Assistant Professor of Government at Wesleyan University and author of The Anti-intellectual Presidency, which draws on interviews with more than 40 presidential speechwriters to investigate this relentless qualitative decline, over the course of 200 years, in our presidents’ ability to communicate with the public. He also blogs at www.elvinlim.com. In the article below he looks at Sarah Palin. See his previous OUPblogs here.

Last Thursday, former Governor of Alaska endorsed Conservative Party candidate, Doug Hoffman, over Republican Party candidate, Dede Scozzafava, in New York’s 23rd Congressional District’s special election. This is a pre-book launching publicity stunt, leaving no doubt that Sarah Palin is Going Rogue. She has now erased all remaining speculation that she retains personal political ambitions, at least within the Republican Party. Ironically, it is not Barack Obama who has become a self-centered celebrity, but Sarah Palin, who is wowing the conservative crowd with her personal, anti-party appeal. Celebrities are most popular when they stand beyond and outside party – consider the sharp dip in Oprah Winfrey’s popularity when she campaigned for Obama – and this is exactly what Palin has done. On Facebook, she explained her endorsement of Hoffman: “Political parties must stand for something. When Republicans were in the wilderness in the late 1970s, Ronald Reagan knew that the doctrine of “blurring the lines” between parties was not an appropriate way to win elections. Unfortunately, the Republican Party today has decided to choose a candidate who more than blurs the lines, and there is no real difference between the Democrat and the Republican in this race. This is why Doug Hoffman is running on the Conservative Party’s ticket.” Palin must know that her support of the Conservative candidate will split the Republican vote, and could end up giving the election to Democrat Bill Owens. If she had wanted to play the endorsement game without stepping on anyone’s shoes, she could have thrown in her support for the Republican candidates in the NJ and VA gubernatorial races, but she hasn’t. Instead, she has become the Frankenstein maverick the McCain campaign created, biting the very hand that fed her. Here is how she concluded her Facebook note: “Republicans and conservatives around the country are sending an important message to the Republican establishment in their outstanding grassroots support for Doug Hoffman: no more politics as usual.” Palin doesn’t so much stand for Doug Hoffman as she stands against “the Republican establishment,” fanning the conservative sentiment that the Republican Party performed poorly in 2008 not because it had become too conservative but because it wasn’t conservative enough. Hers is the anti-median-voter theory of elections, better read as the ideological theory of losing elections. Palin is going to drive the legitimacy crisis of conservatism if she continues on this road. Harold Hotelling and Anthony Downs have showed us that in single-member districts moderate parties targeting median voters win elections. This is a mathematically provable proposition. That is why Mike Huckabee and Tim Pawlenty are not weighing in on the New York race, because they are trying to do exactly what Sarah Palin is accusing the Republican Party of doing – blur the line between conservatism and Republicanism so that they can appeal to as many potential primary voters as possible should they choose to run in 2012. Ideologues (and celebrities) do not care about winning elections, and Huckabee and Pawlenty want to keep that option open. There was a time when liberals were proud to be liberals, and that spelt the beginning of liberalism’s end. Pride and ideological purity drove liberalism’s legitimacy crisis, as will be the case for modern conservatism’s demise. Democrats, folllowing the lead of the “third-way” Bill Clinton, learned after the excesses of the War on Poverty not to stand on ideology alone – which is always extreme and uncompromising – but also on programmatic commitments that could appeal to the median voter. Sarah Palin would not remember it, but there was a time, at the turn of the 20th century, when “conservatism” was a bad word coterminous with “stand-patting.” She is in danger of recycling history, not that she cares, because she has a personal agenda, not an institutional one. When a party allows those who do not care about winning elections to speak for its base, it courts trouble. Behind every anti-Republican establishment hurrah Palin provokes is a voter ready to Go Rogue on election day. Republicans, beware.