Publisher Pearson posts jump in profits after digital push
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Publishing giant Pearson beat analyst’s expectations today with a 33 per cent jump in profits as it pushed ahead with a digital transformation.
The educational publishing group posted underlying profits of £385m as sales increased by one per cent to £3.428bn.
Pearson bosses now intend to roll out a share buyback of £350m, with shareholders also in line for a full-year dividend of 20.5p, capped off by a final dividend of 14.2p.
Andy Bird, Chief executive of the group, said the publisher’s transformation strategy was paying off.
“2021 has been a year of strong progress with the Group’s financial performance ahead of expectations,” he said.
“This reflects disciplined management of the business, operational execution, commitment of colleagues around the world and their ability to successfully navigate challenging market conditions.
“Pearson has been reorganised and refocused with a new purpose to ‘add life to a lifetime of learning’ at the heart of everything we do.
“Our direct-to-consumer strategy is being driven by Pearson+, which had 2.75 million registered users at the end of 2021, with a strategy in place to engage more consumers and grow beyond Higher Education. Pearson is a digital first business, with consumer grade products, and the momentum across the company underpins our confidence for further growth in 2022 and beyond.”
The London headquartered group said its priorities in the year ahead centre on “building a company that is digital first”.
The group’s end of year results come after it acquired Credly, a digital workforce credentials and certifications company, for a total of $200m.
The deal included an upfront payment of around $140m, Pearson’s existing 20% stake in Credly worth about $40m, and an additional amount to be paid following completion of the deal.
The deal will be funded from Pearson’s existing cash and available liquidity.