Harry Potter spurs Bloomsbury's expansion

The magic of Harry Potter has helped Bloomsbury launch a US children's publishing division.

Nigel Newton, Bloomsbury's chairman, says the US operation will start commissioning books later this year for publication from 2002, and the company anticipates it will become a significant business in the years ahead.

The company says the phenomenal success of the Harry Potter books means it will exceed last year's first-half turnover and operating profits by a substantial margin.

Mr Newton has also announced the creation of a new audio publishing list, which will publish audio books on tape and CD by Bloomsbury's major authors.

He says: "The audio book market in the UK is growing at a rate of 10% a year, with demand from customers across all age ranges.''

The company is now gearing up for the publication on July 6 of the paperback edition of Harry Potter And The Goblet Of Fire.

Mr Newton says: "We have already launched in the UK a range of Harry Potter merchandise, including diaries, address books and personal organisers.

"Sales of the books continue at a phenomenal rate, with Harry Potter And The Philosophers' Stone having now been in the Booktrack bestseller list for 208 weeks. The series has proved to be an invaluable tool in developing new business in export markets.

"With the film of the first book due to be launched on November 16, we expect sales of the series and the merchandise to continue to grow rapidly.''

Shares in Bloomsbury rose by 60p or almost 8% to 845p following the announcement of the US expansion.