Financial Times Expected To Break Even By Year End

Pearson, the international media group, said today it expected its flagship newspaper, the Financial Times, to break even by the end of the year despite an erratic advertising market.

The publishing group said ad revenues for the first nine months of this year were up 2%, and forecast the Financial Times would break even in the fourth quarter of the year. The newspaper is also on track to reduce full-year losses by about £20m, says the third quarter trading statement.

The statement says that while advertising trends remain uneven, revenues are up on last year at all Pearson’s business newspapers and, at the Financial Times, forward bookings are slightly ahead.

In a conference call with analysts, chief executive, Marjorie Scardino said: “Our forward bookings are slightly ahead, we always think that’s a good indicator and they are there, but we’d love to call an end to this (the decline) but we’re just going to keep on working on out costs.”

Pearson claims they are seeing good growth in Europe and Asia, but that this is largely offset by a weaker US corporate advertising market. Across the whole of the FT Group, which also includes French financial newspaper Les Echos, sales were up 6%.

Pearson, which also owns book publisher Penguin, said its operating profits were up 7% in the first nine months of the year, helped by lower costs at the FT, on revenues up 2%.

Pearson: www.pearson.com

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