Pearson Upgrades Outlook For 2010 After Strong First Half
July 26 2010 - 02:51AM
Dow Jones News
Pearson PLC (PSON.LN) Monday upgraded its outlook for 2010 as
the publisher reported better-than-expected first-half results,
underpinned by the strong performance of its education and
publishing operations.
While market conditions remain uncertain and growth is expected
to slow in the second-half due to tough comparables, Pearson, which
generates about 60% of its total earnings and sales from its vast
education operations, forecast adjusted earnings of approximately
70 pence a share for the year, up from 65.4 pence a year earlier.
The guidance takes into account the earnings impact from the sale
of its 61% stake in Interactive Data Corp.
"The 2010 finish line isn't yet in sight, but this is as good a
start to our year as I've seen. That boosts our confidence in the
full year, enabling us to brighten our outlook and raise our
guidance," Chief Executive Marjorie Scardino said.
"We've invested consistently in global and digital education and
information and that's helping every part of Pearson grow strongly,
even in uncertain markets. We're also able to accelerate that
change as we part company with Interactive Data and put the
proceeds to work in the world's leading learning company," she
added.
Adjusted operating profit from continuing operations--one of the
figures tracked by U.K. analysts--jumped sharply to GBP178 million
for the six months ended June 30, beating market expectations of
GBP97 million, underpinned by strong growth across all its
businesses. That compares with GBP84 million a year earlier.
Pearson, which also publishes the Financial Times newspaper and
Penguin books, has been clear about its strategy to expand its
education business in Asia, Africa and Latin America.
Since the sale of its 61% stake in IDC for around $2 billion
before tax in May, the group has bought two businesses, Melorio PLC
(MLO.LN) for GBP99.3 million and Sistema Educacional Brasileiro's
learning systems business for GBP326 million.
Pearson declared an interim dividend of 13 pence a share, up 7%
from 12.2 pence a year earlier.
Pearson shares closed at 973 pence Friday, valuing the group at
GBP7.79 billion.
-By Lilly Vitorovich, Dow Jones Newswires; 44-0-207 842 9290;
lilly.vitorovich@dowjones.com
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