Pearson on track to hit full year estimates

Financial Times owner Pearson said it was sticking with its full year outlook of growth in sales and operating profits despite tough conditions.

Financial Times owner Pearson said it was sticking with its full year outlook of growth in sales and operating profits despite tough conditions.

The company said that sales were up 5% and operating profit down 5% in the first nine months of the year.

Sales were driven by good growth at International Education and the FT Group and a 'resilient' performance in North American Education.

The drop in operating profits reflected the sale of FTSE in 2011, acquisition integration costs and continued weakness in UK professional training, the firm said.

At Penguin, which the firm is merging with Random House, sales were down 1% compared to 2011, however the third quarter saw ebook revenue rise 35% on 2011.

Its Professional Education division struggled, with the take-up of new training programmes being slower-than-expected.

As a result, the company expects full-year profits in Professional Education to be significantly lower than in 2011.

The highlight was International Education, where sales were up 13% after nine months.

Pearson said its digital and services businesses continued to grow, with sustained momentum in English language schools in China, school services in India, higher education in South Africa and school learning systems in Brazil.

However, textbook publishing remained generally weak, particularly in markets where purchases are publicly-funded.

"We have confidently reiterated our guidance because many of our businesses are going strong in this complicated trading environment," said Chief Executive Marjorie Scardino.

"But the dynamics of the markets we're in could make that achievement more about resilience than flamboyance.

"As always, all the people in Pearson have their shoulders to the wheels that turn in our important fourth quarter," she said.

Recommended

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
23 Jan 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
5 Jan 2023
Investing trends to watch out for in 2023: what analysts say
Investment strategy

Investing trends to watch out for in 2023: what analysts say

What are sensible strategies for high inflationary times? We ask analysts to find out.
22 Dec 2022

Most Popular

House prices could fall 30%. Should investors be worried about a repeat of 2008?
Investments

House prices could fall 30%. Should investors be worried about a repeat of 2008?

Some analysts are predicting that house prices could fall as much as 30%, which, when compared to the fact that prices have jumped 28% since April 201…
24 Jan 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Wholesale gas prices are on a downward trajectory, but does this mean lower energy bills later this year?
27 Jan 2023
Council tax increases 2023 – how much more will you pay?
Tax

Council tax increases 2023 – how much more will you pay?

Your council tax bill will go up in April - we reveal the councils that have confirmed what this year’s increase will be.
23 Jan 2023