Pearson ups profit expectations as it gears up for new offerings
Pearson raised its full year guidance this morning, following a strong financial performance in 2021, with group sales up eight per cent.
The British multinational publishing and education firm expects profits of £385m, up 33 per cent compared to last year and ahead of expectations.
The company hopes to win investors’ backing for its new direct-to-consumer strategy and boost its share price.
Andy Bird, chief exec, and a former Disney executive, said: “We made great progress in Q4 and are delivering a strong full year performance, with sales growth and profit exceeding our original guidance.”
“Led by a strong management team, we are repositioning the business, driving digital innovation and an increased focus on the consumer through the launch of Pearson+. We are well placed to build on this momentum in the year ahead and look to the future with confidence.”
Bird joined the company in 2020 and has been under pressure to drive growth after years of disappointing returns.
Pearson+ launched last year and is a subscription service that offers students access to the full digitally enhanced Pearson library for $14.99 a month.
It has 2.75m registered users, reflecting a strong uptake from MyLab and Mastering users, as well as 133k paid subscriptions.
However, The Financial Times reported this morning how investors remain concerned that falling college enrolments in the US would undermine the efforts of Pearson+.
In its unaudited update, sales in assessment and qualifications, its largest business, were up 18 per cent driven by the strength of Professional Certification (VUE), Clinical Assessment and US Student Assessment, following a recovery from COVID-19.
Sales in Virtual Learning grew 11 per cent for the full year with sales growth of 17 per cent in Virtual Schools due to strong enrolment growth in the prior academic year (2020-21).
Pearson also acquired Faethm, the workforce AI and predictive analytics company, which hopes to enhance Pearson’s Workforce Skills capabilities.
Full year results will be announced on February 25, alongside a strategic update.