Pearson Backs 2018 Guidance as 1st Half Underlying Profit Grows
July 27 2018 - 3:05AM
Dow Jones News
By Adam Clark
Pearson PLC (PSON.LN) said Friday that its underlying profit and
revenue rose in the first half, but that it continues to expect a
decline in its U.S. higher education business due to market
pressures.
The FTSE 100-listed education company said its adjusted
operating profit for the half came to 107 million pounds ($140.2
million). This was flat from the year-earlier half but up 46% on an
underlying basis, which excludes currency movement, portfolio
changes and new accounting rules.
Sales dropped to GBP1.87 billion from GBP2.05 billion, but
Pearson said that this represented 2% underlying growth. On a
statutory basis, Pearson swung to a pretax profit of GBP202 million
from a loss of GBP10 million, due to the sales of its Wall Street
English and Utel businesses.
In North America, Pearson's largest market, underlying revenue
rose 3%. Pearson said its struggling U.S. Higher Education
Courseware business increased revenue modestly, but it continues to
expect a decline in net sales in the second half.
Pearson said its 2018 expectations remain unchanged, having
previously guided for an adjusted operating profit of between
GBP520 million and GBP560 million pounds for the full year,
including businesses held for sale.
The company said it remains on track to deliver cost savings of
GBP300 million per annum, with the full benefits being felt from
the end of 2019 onwards.
The company declared an interim dividend of 5.5 pence, up from
5.0p the prior year.
Write to Adam Clark at adam.clark@dowjones.com;
@AdamDowJones
(END) Dow Jones Newswires
July 27, 2018 02:50 ET (06:50 GMT)
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