Sales rise at Pearson as turnaround continues
Pearson said its ‘cost efficiency programme’ is on track to deliver £300 million of savings by 2020.
Educational publisher Pearson eked out a rise in sales over the first quarter as the firm presses ahead with a sweeping cost-saving programme.
The group, which is embarking on a restructuring, reported a 1% rise in underlying revenues in the period, with growth in North America making up for declines elsewhere.
Pearson said its “cost efficiency programme” is on track to deliver £300 million of annualised savings by 2020.
North American revenues grew 3% and sales in its core unit, which incudes the UK, Australia and Italy, rose 6%.
In the UK, the group has inked a partnership with the University of Sussex to launch a programme of postgraduate online degrees from September.
Turnover plummeted 12% across Pearson’s so-called “growth segment”, where it trades in Brazil, China, India and South Africa.
Trading at publisher Penguin Random House is in line with expectations, Pearson said.
Chief executive John Fallon said: “We have made a good start to 2018, performing in line with our expectations.
“We continue to make good progress against our strategic priorities including our digital transformation, and we expect to grow underlying profit in 2018.”
The group maintained its operating profit guidance for 2018 of £520 million to £560 million.