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Pearson PLC said Friday that pretax profit for last year more than halved as revenue declined and the company booked reduced gains on disposals and restructuring charges.
Pretax profit for 2019 was 232 million pounds ($299.0 million) compared with GBP498 million a year earlier, the London-based education company PSON, +1.18% said. Net profit fell to GBP264 million last year from GBP590 million in 2018.
Adjusted operating profit–one of Pearson’s preferred earnings metrics–rose 6.4% to GBP581 million, the company said. Analysts expected an adjusted operating profit of GBP580 million, according to a consensus compiled by Vuma and based on estimates by 11 analysts.
Revenue fell to GBP3.87 billion from GBP4.13 billion a year before, Pearson said. Analysts expected revenue at GBP3.86 billion, according to a Vuma consensus.
On an underlying basis, revenue was flat as guided by the company, due to a 12% drop in its key U.S. higher-education courseware segment.
Pearson said adjusted operating profit for 2020 is expected to be between GBP410 million and GBP490 million, excluding its 25% stake in Penguin Random House which it agreed to sell to Bertelsmann SE last year.
The board raised its final dividend to 13.4 pence a share, from 13.0 pence a share a year before.
