Led by a strong fourth quarter in which revenue rose 15%, total sales at HarperCollins increased 6% in the fiscal year ended June 30, to $2.29 billion. Profits, however, fell 3%, to $287 million.

HarperCollins parent company News Corp attributed the big fourth quarter to good performances in its General Books group, which benefitted most of the year from Rachel Reid’s Game Changer series, plus higher sales in its children’s publishing division and in the U.K. For the full year, sales in its Christian publishing program also did well.

The earnings decline, the company said, was due to a $13 million write-off from the closure of Baker & Taylor, plus a $16 million write-off related to inventory of HarperCollins’s international operations.

Digital sales rose 4% for the full year and accounted for 23% of consumer revenue, down from 24% a year ago. Nonetheless, News Corp CEO Robert Thomson—pointing to a 12% increase in digital sales in the fourth quarter, led by a 16% gain in audiobook sales—saw a bright future in audio, helped by AI.

“AI will certainly provide a role in helping bring books to life through the use of vivid voices and the ability to generate a compelling audio experience that makes the IP that much more valuable,” Thomson said in a call with analysts. “When you think about it, AI can really transform audiobooks as there will be so much more choice in the voices, the sound effects and other techniques and tools that will bring words to life.”

He also touted AI’s ability to “enable much more cost-effective translations into multiple languages, both in text and audio.”

HarperCollins CEO Brian Murray expanded on Thomson’s comments, noting that what the company is focused on is using AI to help translate books overseas. He cited India as an example, noting that HarperCollins currently has no titles in several different Indian languages and that using AI for translations and narration could help fill that hole. He said that with very rare exceptions, he sees no need to change the current English-language audiobook model of using professional narrators.

Also on the topic of AI, Thomson said HarperCollins will likely benefit from its share of the $1.5 billion settlement with Anthropic, which will be compensating authors and publishers for IP claims related to AI. “This will certainly not be the last litigation related to AI,” he said. “And so we expect compelling cash-rich legal sequels.”

News Corp CFO Lavanya Chandrashekar was optimistic about prospects for the publisher’s fiscal 2027, citing a strong a frontlist program and an easier comparison versus the prior year. Murray agreed with Chandrashekar’s assessment, pointing to upcoming books by such authors as Sylvester Stallone, James Patterson, Barbara Kingsolver, and Cher. Moreover, Murrary said market conditions are generally good.

“Consumer spending is holding up,” he said, noting that the publisher’s biggest customers are generally more efficient, ordering books later and in fewer quantities a strategy that lowers returns. And following B&T’s collapse, Murray said the library market is coming back, though it is difficult to pinpoint to what level given that the business is now broken up between a number of players including Ingram and Amazon.

Murray was very pleased with the recent reorganization implemented by Liate Stehlik earlier this year, explaining that the new structure sets up HarperCollins “for the next 10 years.” He is also looking forward to the opening of HC's new 1.6 million sq. ft. warehouse that is nearing completion, and expects to start moving books into the facility next summer.