FINANCIAL Times parent Pearson yesterday reported better-than-expected trading in its education arm, helping to offset a 40 per cent plunge in interim earnings from newspaper and magazines.
Pearson, which also owns the Penguin publishing business, reported a 13 per cent rise in pre-tax profits to £62 million in the first six months of the year, thanks largely to an 80 per cent surge in international education profits.
The advertising
slump left underlying earnings at its FT Publishing arm at £14m against £30m a year earlier. But Pearson said it had been reducing its reliance on advertising revenues, which now account for 18 per cent of FT Group revenues, down from 52 per cent in 2000.
Pearson – which has been diversifying its business away from a traditional publisher over the past ten years – said that while circulation at the Financial Times declined by 6 per cent, the number of paying online subscribers rose 18 per cent to more than 117,000.
In education, the group's north US business swung out of the red, with half-year operating profits of £12m against losses of £16m a year earlier. The division is its largest business, although the international education arm saw operating profits surge to £23m, with its key second half selling season yet to come.
Penguin struggled in a tough first half, with earnings down by 23 per cent, but has hopes for strong upcoming releases including new titles by Jamie Oliver and Nick Hornby.
The wider group is sticking to full-year profit guidance as it hopes stronger-than-expected trading will offset any negative impact from a weakening dollar.
Pearson chief executive Marjorie Scardino said: "The transformation we've been pursuing for a decade – from 'publishing' company to content, technology and services company – is paying off."
