Pearson Regulatory News (PSON)

Pearson plc

("Pearson")

Pearson's OPM contract with ASU to end in 2023 - no change to Group guidance

LONDON, 19 APRIL 2022: Pearson, the world's leading learning company, today announces that its Online Program Management (OPM) partnership with Arizona State University (ASU) will end in June 2023 and reiterates existing Group financial guidance.

Over the last 10 years, the ground-breaking collaboration between Pearson and ASU has helped the university enhance and expand its online learning services and resources. Together, ASU and Pearson share a deep commitment to making an impact on the lives of learners and this highly successful partnership has helped tens of thousands of students to reach their potential by obtaining a college degree. 

The profit impact of the contract termination will be modest in 2022 and 2023 and will be offset thereafter through eliminating related costs and re-directing investment across our strategic growth opportunities. There is no change to the Group financial guidance for 2022 that we laid out at our preliminary results in February this year and our medium-term Group level guidance is also unchanged. We continue to expect to achieve mid-single digit Group revenue CAGR from 2022 to 2025 and for Group margins to remain relatively stable in the near term, as we invest to drive growth, improving by 2025 to mid-teens.

This announcement contains inside information.

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