Pearson 2016 Net Loss Widens Amid Tough US, UK Markets --Update
February 24 2017 - 5:06AM
Dow Jones News
By Rory Gallivan
LONDON--Pearson PLC (PSON.LN) reported a wider full-year net
loss after incurring a big impairment charge to reflect tough
conditions in the U.K. and U.S. education markets.
The educational publishing company Friday reported a net loss of
2.56 billion pounds ($3.19 billion) for 2016, compared with a
GBP433 million loss in 2015. Revenue rose to GBP4.55 billion from
GBP4.47 billion, but fell 8% when stripping out factors such as
currency moves.
The loss includes an impairment charge of GBP2.55 billion to
cover expected tougher conditions in the U.S. education market.
The final dividend was maintained at 34 pence but Pearson
reiterated plans to reduce it in 2017, without saying by how
much.
Shares in Pearson tumbled last month when it warned of weak 2016
earnings and said it aims to sell its stake in book publisher
Penguin Random House.
Pearson, whose recent portfolio adjustment has most notably
involved the sale of the Financial Times newspaper in 2015, also
said Friday that it will explore the sale of its English test
preparation business, Global Education, which it bought for $155
million in 2011.
"You can expect us to continue to simplify the portfolio," Chief
Executive John Fallon told reporters.
At 0922 GMT, its shares were down 14 pence, or 2.2%, at 633
pence, valuing the company at GBP5.31 billion.
-Write to Rory Gallivan at rory.gallivan@wsj.com; Twitter:
@RoryGallivan
(END) Dow Jones Newswires
February 24, 2017 04:51 ET (09:51 GMT)
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