July 25, 2014 / 7:16 AM / in 3 years

CORRECTED-UPDATE 1-Pearson profit dented by restructuring charges and currency

(Corrects month in third graph to February from April)

LONDON, July 25 (Reuters) - Publishing group Pearson posted a 41 percent slump in first-half profit, reflecting increased restructuring charges, currency movements and the impact on margins of the phasing of revenues into the second half.

The company, which makes over 70 percent of its revenue from educational publishing and also owns the Financial Times newspaper, said on Friday its outlook for the year was unchanged.

Pearson, which warned on earnings in February, made adjusted operating profit, excluding the sold Mergermarket business, of 73 million pounds ($124 million) in the first half of 2014, down from 124 million pounds last year.

Net restructuring charges were 43 million pounds, up from 29 million pounds in the same period last year.

Pearson posted adjusted earnings per share after restructuring charges of 4.7 pence, down from 9.9 pence, but raised its dividend 6 percent to 17 pence “reflecting our confidence in our prospects”.

Shares in the group, down 13 percent over the last year, were trading up 3 percent at 1,134 pence at 0712 GMT.

Analyst Gareth Davies at Numis, who has a “hold” rating on the stock, said the results were broadly as expected, with the increased dividend a positive.

First half sales at constant exchange rates rose 2 percent to 2 billion pounds, reflecting growth in digital, services and emerging markets, offset by the impact of school curriculum changes in the United States and Britain.

Pearson maintained its guidance for adjusted earnings per share of 62-67 pence for the full year.

$1 = 0.5886 British Pounds Reporting by James Davey; Editing by Paul Sandle and David Holmes

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below