Sharewatch: Pearson Drops Despite Rising Profits

Financial Times owner, Pearson, saw shares slide by 0.4% yesterday despite announcing a 2.8% increase in pre-tax profits in its full-year financial results. However, the Financial Times posted a loss of £32 million during 2003, despite a wide ranging cost-cutting programme across the flagship business daily (see Losses Widen At FT And The Outlook Remains Uncertain).

WPP also suffered a fall, dropping 2.24% to close at 588˝p despite revealing a solid 18% increase in pre-tax profit to more than £473 million for 2003. The company said that advertising and media were the driving forces behind its positive performance (see WPP Takes Bullish Stance As Pre-Tax Profits Rise).

Meanwhile, Telewest remained unchanged as the embattled cable operator launched more affordable high-speed internet packages to boost customer levels (see BT Launches New Cut-Price Broadband Service).

The FTSE 100 hit a 20-month high yesterday, closing up 1% at 4,537, while the more cyclicalFTSE 250 finished on its highest figure since June 2001, up 0.8% to 6,322.5.

The closing prices of media company shares on Monday were: