Pearson PLC (LSE:PSON) has reiterated that it is on track to meet expectations this year after a good performance from its online English learning activities.
Underlying sales rose by 7% in the nine months to end-September 2022, while Pearson said it was set for £100mln of cost savings this year. which will accelerate its margin improvement plans.
The online education specialist also pointed to a possible translation boost from the current weakness in the pound versus the dollar.
Each 5 US cent movement against the pound equates to approximately £15mln of adjusted operating profit, the company noted.
Current consensus forecasts are for adjusted operating profits this year of £416mln at an exchange rate of £1:US$1.37, though the pound is currently trading at US$1.14 or a difference of 23 US cents.
Andy Bird, Pearson chief executive, said it had been “another good quarter” and it was making good progress on its "digital learning ecosystem" strategy.
English language learning was the standout in the three month period with growth of 28% driven by Pearson’s Test of English.
Assessment sales were up 12% as trading conditions normalise after the COVID-19 pandemic; Workforce Skills was up 9%, while businesses earmarked for disposal also did well with 20% revenue growth.
Higher education was the weak spot with sales down 4% though the new Pearson+ online student scheme was said to be going well.
The company said a sale of its South African business is expected to complete by the end of the year following the sales of its international courseware local publishing businesses.