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FT Troubles Fail To Deter Pearson

FT Troubles Fail To Deter Pearson

Publisher Pearson says it remains on target to meet earnings goals despite falling ad revenues at the Financial Times.

In a trading update, the company said that advertising revenues at the FT would be 12% lower in the second half than in the same period in 2002. The full year decline is expected to be in the region of 15%, following an 18% fall in H1 (see Pearson Revenues Drop As Ad Bite Continues At FT).

“Advertising revenues across our business newspapers continue to be erratic,” the group admitted yesterday. “At the Financial Times, advertising has continued to decline year on year, despite modest growth in September and good growth in the US.”

On a positive front, the cost base has been reduced by by around £15 million this year, half of which has been reinvested in the newspaper. Pearson claims to have reduced costs at the FT by approximately £100 million since 2000.

Profits at the FT Group are predicted to be slightly ahead of last year due to a strong showing by IDC. Sales growth is also expected at Pearson’s school and higher education businesses.

The company anticipates adjusted earnings per share “to be within the range of current market expectations,” or 30.9p to 33.0p per share.

Exchange rates are unfavourable at present but the company is confident that it will make progress on earnings, cash and returns in 2004.

Shares in Pearson were down 7p at 610p at 11am today.

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