Pearson boss forecasts ‘rapid advances’ in AI as profit holds
Pearson has predicted artificial intelligence (AI) will reshape the educational publishing market today as it doubled down on its forecasts despite a drop in sales in the first half of the year.
The London-listed publisher reported sales of £1.75bn in the six months to July, down from a haul of £1.88bn in the same period last year. On an adjusted basis, operating profit levelled out at £250m.
Pearson said its outlook for profit, sales and tax remained in “in line” with market expectations, with interested coming around £45m and free cash flow conversion of 95 to 100 per cent.
Chief executive Omar Abbosh noted “significant demographic shifts” and “rapid advances in AI” would be key drivers of growth in education over the coming years.
“We are implementing plans across all of our businesses that will see us deliver better products and services with greater efficiency,” he said in a statement to markets.
“We’re also focusing on opportunities to progressively build our presence in materially larger and higher growth markets in which we are well positioned to succeed, with a particular focus on early careers and enterprise skilling.”
Despite the middle-of-the-road results, investors in Pearson are in line for a bumper dividend of 7.4p per share, up six per cent year-on-year.
The group also said a £500m share buyback programme was “substantially complete.” The board approved a £300m scheme in September, with a further £200m extension in March.
Some 28m shares have been bought back at a cash cost of £278m so far, the FTSE 100 firm said. Pearson shares have risen over eight per cent this year to date.