Pearson Will Not Sell Financial Times

Pearson has no intention of selling its flagship newspaper the Financial Times, according to Dennis Stevenson, outgoing chairman of publishing group Pearson.

Speaking at the companies annual general meeting, Stevenson said that while the group is “always looking at its options…we are not considering selling the FT”.

Stevenson also said that cost-cutting at the Financial Times means that the paper is “highly leveraged” to any upturn in advertising spending. He added that every extra pound in advertising generated by the paper would result in an extra 80 pence in bottom line profits.

The Financial Times has been involved in an extensive £7 million cost cutting programme, which saw the close of its weekly supplement Creative Business earlier this year (see Financial Times Could Close Creative Business).

Stevenson told shareholders: “Only a modest rise in advertising would bring profits in the tens of millions for the Financial Times.

Earlier this month it was reported that publishers of the Financial Times Pearson UK was facing growing pressures to sell its flagship publication, after it emerged that Terry Smith, a city broker, had held talks with trade buyers about a bid for the newspaper (see Pearson Under Pressure To Sell FT).

Meanwhile, this year has seen the Financial Times launch a series of extras to the traditional publication, announcing earlier this month the start of compact afternoon freesheet called FTpm(see FT Launches Compact Afternoon Freesheet).

Earlier in the year the Financial Times announced plans to publish a glossy colour supplement, building on last month’s male-focused Business of Fashion supplement with a women’s edition (see FT To Launch Women’s Fashion Supplement).

Financial Times: 020 7873 3000 www.ft.com