viewPearson PLC

Pearson encouraged by stabilising sales as digital shift accelerates

Underlying revenues for the first half of the year were up 2% to £1.8bn, with adjusted operating profits growing 30% to £144mln

The educational publisher is on track to launch a suite of new digital products over the coming months

Pearson PLC (LON:PSON) has upgraded full-year guidance for adjusted earnings per share as the educational publisher said it was starting to benefit from accelerating its shift to digital.

Underlying revenues for the first half of the year were up 2% to £1.8bn, with the dominant North American business up 1%, the Core assessment arm 6% and the Growth segment up 2%.

With the simplification strategy producing incremental cost savings of £60mln in the first half, adjusted operating profits grew 30% to £144mln, although the vast majority of profits are weighted to the second half of the year.

READ: Pearson stops the presses with shift to “digital first” strategy

Chief executive John Fallon said: “We've had a good first half, with underlying growth across all divisions, as we start to benefit from accelerating our shift to digital.”

The FTSE 100 group is on track to launch its ‘Global Learning Platform’ and a suite of new digital products over the coming months.

Fallon said Pearson was “on track to at least stabilise revenue this year and return the company to top line growth from 2020”, keeping profit guidance unchanged but upgrading his EPS guidance to 57.5p-63p, though this only reflected improvements in finance costs and exchange rates.

Broker Liberum said the first-half “is a mixed indicator of full-year trends” and “do not believe the 2020 recovery story especially given the company is likely to be forced to go another major round of restructuring in US higher education to counteract the growing success of Cengage Unlimited”.

Pearson shares jumped 6% to 927.4p on Friday morning.

Quick facts: Pearson PLC

Price: 551.4 GBX

Market: LSE
Market Cap: £4.16 billion

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...


ImagineAR signs two year deal with Valencia FC to bring Augmented Reality to...

ImagineAR (CSE: IP-OTCQB: IPNFF) CEO Alen Paul Silverrstieen and Valencia Chief Digital Innovation Officer Franco Segarra joined Steve Darling from Proactive to bring news the company has signed a two-year partnership agreement with Valencia FC, one of the biggest soccer clubs in the world and...

17 minutes ago

2 min read