Penguin Parent reports rise in profits
Penguin publishing business parent Pearson has said better-than-expected trading in its education arm offset a 40% plunge in interim earnings from newspapers and magazines.
Pearson reported a 13% rise in pre-tax profits to £62 million in the first six months of the year thanks largely to an 80% surge in international education profits.
Shares rose 9% as Monday’s results came in higher than analysts had forecast.
Pearson – which has been diversifying its business away from a traditional publisher over the past 10 years – said while circulation at the Financial Times newspaper declined by 6%, the number of paying online subscribers rose 18% to more than 117,000.
The Economist, in which Pearson owns a 50% stake, saw weekly circulation grow by 6.4% and earnings rise 26% to £56 million.
In education, its north US business swung out of the red, with half-year operating profits of £12 million against losses of £16 million a year earlier.
Penguin struggled in a tough first half, with earnings down by 23%, but is looking to strong upcoming releases including new titles by Jamie Oliver, Eoin Colfer and Nick Hornby to help the division.