Pearson raises 2010 earnings forecast for the third time



Pearson Group - Strong Performance in Difficult Conditions

Pearson Group – Strong Performance in Difficult Conditions

Pearson Plc – the media and publishing house that owns the Financial Times and Penguin books, has raised its profit forecast for the third time this year, citing robust growth in emerging markets and digital services segment.

In a statement issued today, Pearson said adjusted Earnings/Profit per share will be 76 Pence. It expects profit from continuing operations to rise by 20 percent to £850 million ($1.36 billion) in 2010 and said it expects another good year in 2011.

Pearson has been focusing on emerging markets, global education and digital services and gets its major revenues from educational services. The London based company will post “healthy sales growth and further margin improvement”, it said in a statement.

Although economic conditions remain adverse, still “for the third successive year, our growth is vigorous even though market conditions have been anemic”, said CEO Marjorie Scardino. “We are on the right road and set out on 2011 with confidence that we will have another good year”, said the confident Chief Executive.

Pearson’s international education businesses, including the North America one, have been increasing its market share. The process of integrating its recent acquisitions in South Africa, Brazil, China and Nigeria has also begun.

Pearson announced yesterday that it will hike its share in India’s TutorVista for $127 million to gain a controlling stake of 76 percent. In November Pearson completed a deal to acquire 75 percent stake of South Africa’s CTI Education Group in an £31 million all cash deal.

In May 2010, it had sold its 61 percent share in Interactive Data for $3.4 billion and said it ill use the money to fund its acquisitions in the education and technology segments.

Penguin is expected to post record profits although physical books market remains weak. On the back of strong recovery of the ad market and robust demand for subscription based services, the Financial Times is expected to report “substantial profit growth”, Pearson said.

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