Pearson PLC (LSE:PSON) penned an underwhelming sales performance in the first half of 2024, with top-line revenues falling 6.6% to £1.75 billion.
However, adjusted operating profit remained unchanged at £250 million and adjusted earnings per share were steady at 25.6p.
Excluding the impact of exiting its online programme management and strategic review businesses, Pearson’s year-on-year sales increased by 2%.
The education provider’s recently-appointed chief executive, Omar Abbosh, has been on an efficiency drive since he took over in January, positioning artificial intelligence as key to his plans.
Abbosh touched on this in today’s interim update, stating: “Significant demographic shifts and rapid advances in AI will be important drivers of growth in education and work over the coming years, and this plays to Pearson's strengths as a trusted provider of learning and assessment services.
“We are implementing plans across all of our businesses that will see us deliver better products and services with greater efficiency.
“We're also focusing on opportunities to progressively build our presence in materially larger and higher growth markets in which we are well positioned to succeed, with a particular focus on early careers and enterprise skilling.”
Outlook unchanged
Pearson had previously guided revenue growth weighted to the second half. Despite the decline in first-half revenues, the group has stuck to its guns by keeping full-year guidance unchanged.
Pearson expects low to mid-single-digit sales growth in the assessment and qualifications segment; a “return to growth” in higher education; but a fall in virtual school revenues due to losing a key client.
Today’s results were met with little fanfare on the market, with Pearson shares falling 4.3% to 1,006p in opening exchanges.