29th Apr 2022 10:05
(Alliance News) - Pearson PLC on Friday reported good underlying sales growth in its first quarter on a strong contribution from its Assessment & Qualifications and English Language Learning divisions.
The London-based education publisher also announced an acquisition to enhance its English Language Learning unit.
Pearson reported underlying sales growth of 7% in the quarter ended March 31 and backed its guidance for adjusted operating profit in 2022.
The company said that its Assessment & Qualifications division grew sales by 22% in the period, with growth across all areas. Its Virtual Learning grew sales by 3%, while English Language Learning sales increased by 18%, and sales in its Workforce Skills unit grew 9%.
In Pearson's Higher Education division, however, sales declined 5%, due to expected declines in US Higher Education, reflecting a continued decline in enrolments and courses per enrolment combined for the 2021/22 academic year, it said.
Sales in businesses it has under strategic review decreased by 11%.
Pearson said that it has agreed to buy Mondly, an online language learning platform. It provided no financial details about the acquisition, but said it expects the purchase to accelerate revenue growth for its English Language Learning division from 2023 onward. Pearson added that it expects mid-teens margins for the division by 2025.
"Mondly is a fast growing and profitable business that expands our reach and scale in the language learning market and drives growth for the company," said Pearson Chief Executive Andy Bird. "This acquisition is strategically important to the group as well as being accretive and driving shareholder returns."
Mondly offers learning of English and 40 other languages via its app and other digital products, including virtual reality.
The company added that its GBP350 million share buyback programme has begun, with GBP75 million already completed.
Shares in Pearson were up 2.9% at 793.20 pence each on Friday morning in London.
By Abby Amoakuh; [email protected]
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