“There is an inertia that everything good will begin in the third quarter [po stronie przychodowej]but Impact will only have in the fourth quarter or even next year. So the perspective that somewhere else some negative phenomena from October will be visible to a small extent in the next quarter is possible, but I would still call it a side or side phenomenon, “said Małczyński.
From the report published a week ago for the second quarter of this year. it follows that revenues fell year to year by 8 percent. up to PLN 27 million, and the loss amounted to PLN 0.4 million compared to PLN 3.1 million from a year ago. In the whole first half of the year, however, the company had a profit of PLN 1.8 million, lower by 64 percent. rdr.
The president pointed out that the company in the horizon of the second half of the year is expecting stabilization of the subscription resignation indicator (Churn) and customer base. This decreased at the turn of the year, when some subscribers did not renew the subscription. He did not provide this in the quarterly report, but on the Legimi website there is information that 219 thousand. people pay for access to the website, i.e. 640 thousand. books placed in it.
The Management Board of Legimi indicates in the report that it was a consequence of “the confusion and the media hype that arose around the correctness of conducting settlements with publishers and negative PR, which some representatives of the book industry, and in particular competitive entities to Legimi, tried to build around the company.”
The right of books
In October, publishers accused Legimi of incorrect settlements of sales of e-books and audiobooks and the distribution of their titles without appropriate contracts, which caused that over 30,000 disappeared from the Platform. titles.
Read also: A common platform for sales of e-books? The publishers are waiting for the decision
Legimi solved this problem by concluding an agreement with the distribution platform of publications (PDW) and introducing changes to the subscription model. The company paid publishers overdue salaries and also undertakes to conduct an audit of the settlement system. The “club catalog” was also introduced with additional fees for selected titles to adapt to changes in the copyright.
“It is The last inheritance quarter when it comes to the user baseWhen it comes to revenues, it is clear that we are not ready to carry out increases that would be justified by an increase in general costs compared to previous years, because GUS inflation is still relatively high in relation to our last increases from a year and a half. Nevertheless, this is all still within the limits of good levels of margins and economic efficiency, which we will work on in subsequent periods ” – explained the president.
In addition, he estimated that the declarations from the global large five publishers regarding The use of AI tools for, among others translations They can be both an opportunity and a challenge for a long date for the Polish publishing market.
AT AID
“I recommend the statements of international publishers from the so -called huge five who clearly say that They use AI in both translations, content selection and recording. This is for us, I think that not yet a threat, and even for now I would not treat it in such categories, but even as a chance, “he said.
“This is probably an accelerating phenomenon reduction of content and translation production costswhich will cause more foreign content to appear, which will already be available from the level of international partners and entities. In this regard, in the following years we will definitely notice development and Our native publishers have the impression that they do not monitor it at all” – he added.
Małczyński also pointed out that the company wants to share the Legimi application in version 6.0 in 2025, on which work began in autumn 2024.
