Pearson Half Year Results – Profits Down 27%

Pearson has announced results for the half year to 30th June 1995. The key points of the past six months have been the preparations for sale of 9.75% direct stake in BSkyB and, expansion for the FT newspaper – electronic data services boosted by the planned acquisition of IDC.

Operating profits rose from 6% to £71.4m (£67.6m) and pre-tax profits decreased to £50.5m against last year’s £69.3m; however this takes account of a net non-operational loss of £10.4m compared with a gain of £8.5m in 1994. The Financial Times has expanded overseas by adding Sweden and California to its five existing print sites.

Pearson has also increased development in entertainment , spending £10.5m (£2.2m) in the first half. A significant purchase was that of Grundy Worldwide which was completed in early May but still made a contribution to net profits. Thames Television made a 41% profit gain in the first six months with another £25.1m (£9.4m) coming from BSkyB. A 14% share in Yorkshire Tyne Tees was sold as well as the bid for C5.

Pearson: 0171 411 2000