FT Performs Well For Pearson

The Financial Times increased its revenue over 1996 by 123% year on year to £16.5 million and increased ad revenue by 7%, Pearson announced this morning. The newspaper’s owner also announced that over the next five years up to £100m will be invested in extending the Financial Times and its brand internationally, opening new print sites in Italy, Singapore and especially the United States.

Overall the Pearson group performed well in 1996 with revenues reaching £2.186 billion, a rise of 19% on 1995, and operating profits hitting £281m, an increase of 8%. The results were hit however by a loss of £100m for improper accounting at Penguin USA, which meant that operating profit had to be downgraded to £181m.

Pearson TV achieved record sales and profits, including for the first time a full year of trading from Grundy, with revenue reaching £40m, up 19% on 1995.

Marjorie Scardino, Pearson’s new chief executive, said that her immediate priority is to improve the financial performance of the Group: from now on much more emphasis would be placed on performance measures which are to form the basis of new targets and incentives for its companies.

Recent speculation that Pearson would sell off its television business to provide more focus to its other businesses appears to have been quashed with Mrs Scardino believing that it forms an integral part of the Pearson Group’s business. She said: “We won’t be selling things just to be tidy. We’ll be selling things where the move will make the company more valuable for our shareholders.”

Pearson: 0171 411 2000