4th May 2018 08:23
LONDON (Alliance News) - Education services company Pearson PLC on Friday reiterated its annual earnings expectations, and said that adjusted revenue for the first quarter rose 1% year-on-year, with growth in North America and core business segment offset by phasing of sales in its South African school courseware business.
The company's North America business recorded 3% year-on-year growth in revenue, excluding currency movements, portfolio changes and impact of adopting IFRS 15, for the three months to March. The core business segment, which includes the UK, Australia and Italy, posted 6% growth in adjusted revenue.
The growth segment, which includes Brazil, China, India and South Africa, recorded a 12% drop in adjusted revenue for the period, as good growth in China and Brazil was offset by a decline in South Africa school courseware.
Pearson has retained its 2018 operating profit guidance range of GBP520 million to GBP560 million, adjusted earnings per share range of 49 pence to 53p and cash conversion in excess of 90%. It also said its US K-12 courseware business remains classified as held-for-sale with negotiations on the disposal progressing.
"We have made a good start to 2018, performing in line with our expectations. We continue to make good progress against our strategic priorities including our digital transformation and we expect to grow underlying profit in 2018," said Chief Executive John Fallon.
Shares in the company were trading 2.7% higher at 852.40 pence early Friday in London.
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