PSO Pearson Plc

By Adria Calatayud

Pearson PLC (PSON.LN) said Tuesday that it will shift toward a "digital first" model, and away from print, in its U.S. higher-education publishing operations.

The London-based education company said it is breaking from the traditional education-publishing model of lengthy and expensive print revisions, which has defined U.S. college publishing since the 1970s. All future releases of the company's 1,500 active U.S. titles will be digital first and updated on an ongoing basis, Pearson said.

Pearson--which currently generates 62% of its revenue from digital or digitally-enabled products and services--said the shift will create a more predictable revenue stream with a better quality of earnings.

Shares at 0956 GMT were up 3.1% at 890.20 pence, making Pearson one of the top risers of the FTSE 100.

"We've changed our business model to deliver affordable, convenient and personalized digital materials to students. Our digital-first model lowers prices for students and, over time, increases our revenues," Chief Executive John Fallon said.

Students who still want a print textbook will be able to rent one for an average price of $60, which compares with an average price of $40 for an eBook, the company said. .

Write to Adria Calatayud at adria.calatayudvaello@dowjones.com

(END) Dow Jones Newswires

July 16, 2019 06:18 ET (10:18 GMT)

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