Pearson on track to hit £377m profit despite drop in US university students
Publisher Pearson said it is on track to hit expectations this year, despite a drop-off in US university students.
The business said revenue from its US higher education segment had decreased 9%, pushing down its overall higher education portfolio.
But it is still on track to reach an operating profit of around £377m in the financial year.
Pearson on track to hit £377m profit despite drop in US university students
Publisher Pearson said it is on track to hit expectations this year, despite a drop-off in US university students.
The business said revenue from its US higher education segment had decreased 9%, pushing down its overall higher education portfolio.
But it is still on track to reach an operating profit of around £377m in the financial year.
Media analyst Ian Whittaker pointed out this morning that Pearson only reports percentage changes, not actual revenues. Moreover, unlike last year’s nine-month trading update, there are no quarterly splits provided
“As a point of note, Pearson’s Underlying Sales Growth was down 10 per cent in Q3 2020. Pearson has changed its divisional reporting structure so there are no direct comparables at a divisional level from last year in the statement,” he added.
“Probably the area that will gain most focus is the one that has for a number of years, namely US Higher Education revenues, which historically has been a high margin business and whose decline over the past 7-8 years was
responsible for much of Pearson’s problems,” Whittaker added.