26th April
2021
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Good start to the year with underlying revenue up 5% in the first
quarter
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Andy Bird, Chief Executive
said:
"It's been a good start to the year for Pearson, delivering 5%
sales growth in the quarter. This is despite a longer period of
disruption from COVID-19 in the quarter compared to last year. I'd
like to thank colleagues for their ongoing dedication and hard
work.
"We are building pace and momentum. We are making good strategic
progress in our ongoing shift to digital, we are in the advanced
stages of preparation for the forthcoming launch of our new college
app and our organisational redesign is on track.
"We continue to expect to deliver revenue and profit growth in 2021
and for our performance to be in line with our 2021 outlook as we
benefit from improving trading conditions as COVID-19 restrictions
ease. We are focused on executing our new strategy and believe that
it will create sustainable and significant value for all of
Pearson's stakeholders."
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Financial summary
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Underlying growth
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Sales
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Global Online Learning
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25%
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Global Assessment
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(2)%
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North American Courseware
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1%
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International
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(2)%
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Total
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5%
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Throughout this announcement growth rates are stated on an
underlying basis unless otherwise stated. Underlying growth rates
exclude both currency movements and portfolio changes.
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Highlights
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● Encouraging start to the year despite challenging
market conditions, with underlying revenue growth of 5% reflecting
good progress as we reposition Pearson for sustainable growth with
a strong direct to consumer focus.
● Global Online Learning up 25%, with strong growth
in Virtual Schools due to enrolment growth in the current school
year in Partner Schools as well as in US district partnerships;
modest growth in OPM due to ongoing
impact of discontinued
programs.
● Global Assessment down 2%, as strong recovery
in Professional Certification and US Clinical Assessment was more
than offset by US School Assessment, where revenue was down
significantly due to the challenging
comparative and reuse of
material from cancelled exams.
● North American Courseware up 1% as Canada
benefited from the continued sales shift to digital and a school
funding increase which more than offset a 1% decline in US Higher
Education Courseware. We continued to see
good momentum in the US
business with growth in total units sold into colleges, growth in
digital sales and registrations, and returns continuing to trend
lower. Growth in eBooks more than offset declines in print and
bundle
units, showing signs of
secondary market recapture.
● International down 2% with a decline in English as
COVID-19 continued to impact our courseware and franchise business
in Latin America, notwithstanding slight improvement in Pearson
Test of English volume and
courseware recovery in
China. BTEC revenue was lower due to FE College closures and
lower resit fees due to 2020 exam
cancellations. This
was partially negated by strong courseware sales in Europe and
South Africa.
● We continue to expect our
performance to be in line with our 2021 outlook, as outlined on 8
March 2021 at our full year results.
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Financial summary - new divisions
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Underlying growth
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Sales
|
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Virtual Learning
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26%
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Higher Education
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0%
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English Language Learning
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(4)%
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Workforce Skills
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(8)%
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Assessment & Qualifications
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0%
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Businesses under strategic review*
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3%
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Total
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5%
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Investor Relations
|
Jo Russell
Anjali Kotak
Teddy Symington
|
+44 (0) 7785 451 266
+44 (0) 7802 890 724
+44 (0) 7443 354 088
|
Media
|
Tom Steiner
Gemma Terry
|
+44 (0) 7787 415 891
+44 (0) 7841 363 216
|
Teneo
|
Charles Armitstead
|
+44 (0) 7703 330 269
|
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PEARSON
plc
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Date: 26
April 2021
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By: /s/
NATALIE WHITE
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------------------------------------
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Natalie
White
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Deputy
Company Secretary
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