Pearson reports 13% increase in profits

Pearson, owner of the Financial Times, has reported a 13% increase in pre-tax profits for 2009, to £761 million.

In full-year financial results released today, it said that FT Publishing should sustain good renewal rates in its subscription businesses. “Advertising revenues (which in 2009 accounted for less than 3% of total Pearson revenues) remain highly unpredictable but we expect to see some stabilisation after the sharp declines across the industry in 2009.”

Revenues at FT Publishing declined 12%, due to the impact of advertising revenue declines, although Pearson said this was partly mitigated by growth in content revenues and the resilience of its subscription businesses.

Pearson’s digital products and services generated a record £1.7 billion in revenues last year and now make up 31% of the group’s sales.

Its north American publishing business also enjoyed strong growth, with operating profits of £403 million.

Marjorie Scardino, chief executive, said: “Everyone in Pearson can be proud of these results; it took every one to achieve them. We seized the big opportunity to take share in a tough climate, and we increased sales and profits while investing heavily in the future.

“We’re ready to keep growing, because we’re the leader in dynamic markets where there is great demand for learning, skills and information. We don’t expect any help from the economy any time soon; but we can rely on the 37,000 people in Pearson who continue to deliver, year after year.”