Bloomsbury future under Potter spell

HE HAS been spinning his magic for a while now, but the financial wizardry of Harry Potter may have only just begun for publisher Bloomsbury.

Publishing experts reckon another million copies of Harry Potter and the Philosopher's Stone, the first Harry book, will disappear from the shelves once the film hits general release next week. Last weekend's premier earned outstanding reviews and critics believe it could be the industry's highest earner to date.

Nonetheless, insiders say Harry has touched only a tiny proportion of readers between the ages of eight and 14. The film is likely to excite the legions of kids who aren't pleasure readers. 'At the moment, the book is a middle-class phenomenon,' said one expert. 'There is a whole raft of children who may not be readers yet.'

Sales of Philosopher's Stone are believed to have topped 2m copies in the UK alone. Sales of the subsequent three novels are believed to be nearing the 2m mark.

Harry's success has allowed Bloomsbury to weave its own spell over the stock market. The shares rose another 35p to 837 1/2p in the wake of the film reviews, a 32% improvement in a month, a dreadful period for most media shares. Bloomsbury will continue to outperform in the short term. Investors are keen on media companies 'whose earnings are not dependent on advertising,' said Adrian Kearsey at Beeson Gregory.

Insiders believe Bloomsbury derives more than half its revenues from Harry Potter. Creator JK Rowling needs to concoct another winner to buoy Bloomsbury. The fifth book is not expected until July.

Neither is Bloomsbury the only beneficiary of Harry's magic. Shares in Argonaut jumped 6p to 74 1/2p in anticipation of its forthcoming Harry Potter computer game. Woolworth's is also likely to see its sales jump.