Pearson posts wider first-half loss, reiterates full-year guidance
Publisher Pearson posted a 0.4% decline in first-half operating profit amid a slowdown in the US textbook market, as it confirmed its guidance for the full year.
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The company, which is selling the Financial Times and associated business titles to Japan’s Nikkei for £844m, reported operating profit of £72m, down from £73m in the same period last year.
It said sales growth, lower net restructuring charges, and growth in the contribution from Penguin Random House was offset by revenue mix, shared services costs related to the Penguin de-merger, and a contract termination charge arising from the transition of its three Saudi Arabian Colleges of Excellence to new providers.
Pearson said it made a first-half loss before tax of £115m compared with £36m last year and attributed the decline to a £70m balance sheet write-down related to the sale of its US PowerSchool software business.
Excluding items, adjusted earnings per share was 4.4p versus 4.7p a year ago and the company raised its dividend by 6% to 18p.
Chief executive John Fallon said: "Overall, we're competing well, enabling us to reaffirm our full year guidance and increase the interim dividend. The new education products and services we're developing which will enable far more people of all ages to discover the joy of learning and progress in their careers. We believe the returns on the significant investments we are making to achieve this goal will be substantial for students, society and our shareholders."
Pearson reiterated its guidance of earnings per share of 75p to 80p in 2015.