International media group, Pearson has today issued a positive scheduled trading update ahead of its 2004 preliminary results announcement on 28 February, stating that Pearson’s flagship publication, The Financial Times is breaking even in the fourth quarter, reiterating expectations in the Group’s November trading update (see Financial Times Expected To Break Even By Year End).
The company has experienced a larger than expected growth for its Higher Education Business Group, growing ahead of the industry for the sixth year running.
Pearson remains on track to achieve underlying progress in earnings, cash and return on invested capital in 2004, and the company expect to report adjusted earnings per share of approximately 30p and substantial growth in free cash flow.
Pearson predicts a continued significant acceleration in financial performance throughout 2005, driven by a strong outlook for the education business. Penguin suffered during 2004, as tough trading conditions persisted through the holiday season, particularly in the US market and backlist titles.
Pearson expects a reduction in interest and tax charges compared with 2003, with the full year average exchange rate predicted to be £1:$1.83 (against £1:$1.63 in 2003), reducing the company’s adjusted earnings per share by approximately 4p compared with last year.
In their trading statement, Pearson also announced that they had voted their shares in MarketWatch Inc, in favour of Dow Jones’s proposed acquisition of MarketWatch, with the expectation to receive proceeds of approximately $100 million on completion of the transaction.
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