2nd May 2025 08:50
(Alliance News) - Pearson PLC on Friday said it remains on track to meet its full-year guidance after a steady start to 2025, with momentum expected to build in the second half as the learning company leans into artificial intelligence and professional skills training.
Pearson is a London-based publisher of digital and virtual learning materials for both higher education institutions and professionals.
In a first-quarter trading update, the publisher reported a 1% increase in underlying group sales, noting that all business units performed in line with expectations and highlighting a 6% rise in Higher Education sales, driven by the continued rollout of AI tools and growing demand for digital subscriptions.
Chief Executive Omar Abbosh said the smallest quarter of the year had progressed as planned. "We are confident of delivering on our expectations for the year given our clear path to achieving stronger growth in the second half," he said. "We continue to build AI-enhanced offerings across the business."
Sales in the Assessment & Qualifications division rose 1%, while Enterprise Learning & Skills also gained 1%, supported by new contracts with the UK Ministry of Defence and partnerships with Microsoft and AWS. Pearson recently launched a new Pearson Skilling Suite as part of its professional learning expansion strategy.
Meanwhile, Virtual Learning sales declined 4%, in line with guidance, due to the loss of previous partner schools and funding shifts. However, Spring semester enrolments rose 5% on a same-school basis.
English Language Learning fell 6%, reflecting a strong comparator and the potential impact of 2025 elections on immigration-linked testing volumes.
The group reaffirmed its 2025 outlook, including adjusted operating profit and sales growth in line with market expectations, with stronger performance anticipated in the second half.
A GBP350 million share buyback launched in March is underway, with GBP65 million already completed, and the company recovered GBP100 million in State Aid during the quarter.
Pearson said it remains in a strong financial position, with low leverage, high liquidity and a free cash flow conversion target of 90% to 100% this year.
Shares in Pearson were down 3.1% at 1,137.83 pence on early Friday in London.
By Eva Castanedo, Alliance News reporter
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