Shares in Pearson (LON:PSON) have advanced in London in today’s session, as the blue-chip publisher updated investors on its half-year performance, posting a rise in underlying revenue. The blue-chip publisher noted that its expectations for the full year remained unchanged.
As of 13:29 BST, Pearson’s share price had added 3.42 percent to 955.40p, outperforming the broader UK market, with the benchmark FTSE 100 index which currently stands 0.45 percent higher at 7,697.92 points. The group’s shares have added more than 45 percent to their value over the past year, as compared with about a 3.5-percent gain in the Footsie.
Pearson posts higher revenues
Pearson announced in a statement today that its underlying revenue had climbed two percent in the six months ended June 30, while the group’s adjusted operating profit had soared 46 percent, reflecting sales growth and savings from the group’s ongoing restructuring programme, partially offset by cost inflation and other operational factors.
“Although there is still much to do, we have had a good first half and continued to make progress against our strategic priorities,” the publisher’s chief executive John Fallon commented in the statement. Pearson left its underlying full-year guidance unchanged, expecting to deliver underlying profit growth this year, while cautioning that it also continued to expect a decline in net sales in the second half amid ongoing underlying market pressures.
Analysts weigh in on results
“There’s still one or two bits and pieces left to go, but Pearson’s strategic repositioning is now largely complete. What’s left behind is a pure-play on education, historically not a bad place to be,” George Salmon, equity analyst at Hargreaves Lansdown, commented, as quoted by Proactive Investors. “The problem is the sector is in the midst of change. A trend towards online services is at the heart of the disruption.”