Pearson, the FTSE 100-listed education company, has announced a 5% growth in underlying revenue for the first nine months of the year, excluding its online program management business. The company has also increased its guidance for the year.
Highlights from the report include:
- Assessment and Qualifications sales experienced an 8% rise.
- English Language Learning sales saw a significant increase of 34%.
- Higher Education sales fell 5%, as anticipated, primarily due to a pricing mix effect and a deferral of revenue into the fourth quarter. This deferral was driven by a revenue recognition shift caused by the growth of Pearson+ and platform products.
- Virtual Learning revenue decreased by 20%. This decline can be attributed to an 81% drop in revenue from the online program management business following the wind down of the ASU contract.
Additionally, Pearson has launched a buyback program worth £300 million ($363.6 million). As of October 27, the company has already repurchased £115 million worth of shares.
Pearson has raised its adjusted operating profit guidance by approximately £20 million pounds, now expected to be in the range of £570 million to £575 million.
Looking ahead, Pearson expects revenue growth for the year, excluding its OPM and Strategic Review businesses, to be at the higher end of the low to mid-single digit range previously guided for.