Last checked at 
(Alliance News) - Pearson PLC on Monday upgraded its profit guidance for 2023, after its "strong operational momentum and financial performance" continued into the third quarter.
The London-based publisher of educational materials said revenue in the third quarter rose 2% year-on-year on an underlying basis. In the nine month period, revenue also was up 2%.
Pearson now expects group revenue growth, excluding OPM and strategic review businesses to be at the higher end of its existing low-to-mid-single-digit guidance, and upgraded guidance for adjusted operating profit to a range of GBP570 million to GBP575 million, which is around GBP20 million higher than prior guidance.
In 2022, Pearson book sales of GBP3.84 billion, which was up 12% from GBP3.43 billion in 2021. Adjusted operating profit was GBP456 million, up 18% from GBP385 million.
Pearson said it remains on track to achieve GBP120 million of cost efficiencies in 2023.
"This third quarter performance illustrates the continuing momentum across our businesses, led by Pearson VUE and Pearson Test of English. Our Higher Education business reported as expected and remains on plan to return to growth next year," said Chief Executive Andy Bird.
Underlying revenue growth in the third quarter was 11% for the Assessment & Qualifications division, of which Pearson VUE is a part. It was 21% for English Language Learning, which included Pearson Test of English, and 5% for Workplace Skill. Underlying revenue was down 29% for Virtual Learning and 8% for Higher Education.
Pearson noted that it has bought back GBP115 million of its shares, as part of its buyback programme. In September, Pearson began its GBP300 million buyback.
Pearson also confirmed its new chief executive, Omar Abbosh, will start on January 8, when Bird will leave after leading the London-based firm since 2020.
Abbosh's appointment was announced in September. Previously, he was head of Microsoft Corp's Industry Solutions business.
Bird, who spent 14 years at Walt Disney Co, joined the Pearson board as an independent non-executive director in May 2020 and moved to CEO in August of that year.
Shares in Pearson were up 1.2% to 929.80 pence each in London on Monday morning.
By Sophie Rose, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
