International media group, Pearson, today announced that improved market conditions was the driver behind profits for the first half of this year exceeding expectations to grow by 47%.
Pre-tax profits for the six months to 30th June reached £2 million, up from a loss of £1 million for the same period last year, however erratic advertising trends have taken its toll on revenues which fell to £1.59 billion from £1.67 billion a year ago.
Chief executive, Marjorie Scardino said: “These results for the first half are a good sign of our financial and competitive success, though as usual they represent a small part of our annual total. They make us confident that we will meet our goals, both this year and beyond, as our market conditions improve.”
Losses at Pearson’s flagship newspaper, the Financial Times are £9 million lower than last year as the benefits from cost saving initiatives begin to show and it is expected that by the end of 2004, losses will be £20 million lower year-on-year.
The statement says that the Financial Times group is on track to make good profit progress this year, with all of the business newspapers in good shape to benefit from further improvement in the corporate advertising environment.
Chief financial officer, Rona Fairhead said that the outlook for advertising at the company’s business newspapers remains difficult to predict, despite an upturn in the first half of the year.
At a conference call with reporters she added: “Forward bookings we have give us very poor visibility. We’re not calling an end (to the decline), we’re just pleased the first half is up.”
Poor revenue performance from Pearson Education is expected to be offset by growth in testing and supplementary businesses during 2004 but by 2005, significant revenue and growth profit is expected. The United States higher education business is forecast to grow by 4-6% during 2004.
Related Links
