The Pearson Group, publisher of the Financial Times, today released its results for the year ended 31 December 1998, recording a 19% leap in operating profit, which rose to £389 million during 1998. Adjusted earnings per share climbed 20% to 42p.
Pearson acquired US publishing group Simon & Schuster from Viacom for $4.6 billion (£2.8 billion) in May last year (see Newsline). This newly acquired group contributed £22 million of profits to Pearson.
The group’s TV interests fared well in 1998, with a 39% increase in sales, and increases of over 42% in operating profit for both Pearson TV and Channel 5; BSkyB’s operating profit remained unchanged, probably due to the start up costs of digital television last year. Channel 5 increased its average weekly viewing share to 4.6%.
Pearson’s Financial Times Group did well. The FT saw a 12.7% increase in its total circulation year on year, although month on month the title’s UK circulation dropped slightly. Advertising revenue rose 17% on the previous year.
Penguin, which was named publisher of the year at the 1998 British Book Awards, suffered suppressed operating profits due to the closing of Penguin UK’s Loughborough operations and integrating Ladybird books into its Children’s division.
Commenting on the results, Marjorie Scardino, chief executive of Pearson, said: “This is a good set of results, and we’re proud of them. But what’s behind them is more important. We are reshaping Pearson into a smaller group of bigger businesses and investing more in them. We’re dong this so that we can generate double digit earnings growth every year and continue to create a more durable and valuable company.”
Pearson saw a large drop in its share price after trade began this morning (see Sharewatch). At 1:30pm today, the group’s share price was 1348p, a drop of 74p since trading began.
Pearson Group: 0171 411 2000
