27th Jul 2018 08:10
LONDON (Alliance News) - Publishing and education company Pearson PLC said Friday it still expects underlying growth in the year despite its first half revenues dropping.
In the six months ended June, FTSE 100-listed Pearson posted a 9% drop in revenue to GBP1.87 billion from GBP2.05 billion the year before.
Currency movements decreased revenues by GBP128 million. In underlying terms, however, Pearson said its revenues grew 2%.
This growth was driven by improved performances in its US Higher Education Courseware, Online Program Management, Connections Academy, Professional Certification and Pearson Test of English Academic divisions.
The education company also stressed that its sales are weighted towards the second half of the year.
Pearson's first half pretax profit multiplied to GBP202 million from a GBP10 million loss last year.
The company attributes this swing to the sale of its Wall Street English language teaching business - realising a gain of GBP184 million - and disposing of its equity in its online university partnership in Mexico, UTEL - for a gain of GBP19 million.
Pearson in proposing an increased interim dividend of 5.5 pence from 5.0 pence the previous year.
The blue chip company said it continues to expect it to deliver underlying profit growth for the 2018 financial year.
Its guidance for the full year remains unchanged. Pearson expects to report an adjusted operating profit of between GBP520 million and GBP560 million - down from 2017's adjusted operating profit of GBP576 million.
Chief Executive John Fallon said: "Although there is still much to do, we have had a good first half and continued to make progress against our strategic priorities. We are driving ahead in digital learning, helping more people develop the skills they need to prosper in a fast changing world."
Shares in Pearson were up 0.9% Friday morning at 932.60 pence each.
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