Pearson Reports Loss but Is Upbeat About H2 Prospects

01 August 2007

LONDON: UK-headquartered publisher Pearson yesterday reported a first-half loss due to discontinued operations, but has raised revenue growth forecasts for the remainder of 2007.

The company, which publishes the Financial Times, textbooks for the US schools market and owns Penguin books, said it expected its professional education business to grow by between 5% and 7%, compared with earlier forecasts of flat sales.

Revenue at IDC, the financial-data provider in which Pearson is a majority stockholder, is expected to grow 10% for the year, compared with an earlier forecast of between 6% and 8%.

Pearson made a net loss of £104 million ($211m; £154m) in H1, compared with a £7m profit a year earlier. Discontinued operations contributed £122m of the loss.

Pretax profit almost trebled to £40m, up from £14m a year earlier, while sales rose to £1.72 billion, from £1.67bn. On an underlying basis sales rose 6%.

Data sourced from Wall Street Journal Online; additional content by WARC staff