(Updates throughout, adds detail.)
By Ian Walker and Simon Zekaria
LONDON--Pearson PLC (PSON.LN) on Friday reported a widened
first-half pretax loss after booking a write-down of $109 million,
one day after the U.K.-based publisher and education specialist
said it would reap over $1 billion by casting off key publishing
assets, including its venerable Financial Times newspaper.
For the half year ended June 30, Pearson--which makes about 60%
of its sales in North America and three-quarters of its revenue
from education--suffered a pretax loss of 115 million pounds ($178
million), compared with a loss of GBP36 million a year earlier. The
company said the writedown reflects a reduced market opportunity in
educational software following the sale of school software provider
PowerSchool.
Pearson added that last year's figures were boosted by GBP196
million following the sale of financial information group
Mergermarket.
Stripping out exceptional and other one-off items, operating
profit on an adjusted basis was GBP72 million, compared with GBP73
million in the year-earlier period, while earnings per share on an
adjusted basis were 4.4 pence, down from 4.7 pence.
Sales rose 5% year-over-year GBP2.16 billion, boosted by its
North America education operations and its expanding footprint in
fast-growing international education markets Brazil and China.
The company backed its previous guidance of 75 pence to 80 pence
earnings per share on a adjusted basis for the full year and raised
the interim dividend 6% to 18 pence.
It didn't give any information on its search for a new chairman
following the announcement in April that Glen Moreno, is stepping
down this year after nearly a decade in the role.
"Overall, we're competing well, enabling us to reaffirm our full
year guidance and increase the interim dividend," said Chief
Executive John Fallon.
At 0938 GMT, Pearson shares rose 2.4% to 1,264 pence. Numis
analyst Gareth Davies said the group's reiteration of its guidance
is important for investor sentiment.
Thursday, Pearson said it would sell FT Group, which includes
the Financial Times newspaper, known as the FT, to Nikkei Inc. of
Japan for $1.32 billion. The cash sale to the Japanese business
publisher means Pearson sold off one of its flagship media assets,
as it sharpens its focus on its key education businesses.
For years, London-based Pearson had rejected talk it would sell
its salmon-colored, business-focused title.
However, Mr. Fallon said after nearly 60 years of ownership of
the FT the company reached an "inflection point" in media, driven
by the explosive growth of mobile and social. This, he said, meant
the FT would be better off with a new owner.
Write to Ian Walker at ian.walker@wsj.com and Simon Zekaria at
simon.zekaria@wsj.com
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