Global education group Pearson has today raised its forecast for full-year adjusted operating profit in a boost to management efforts to restructure the business and counter fluctuating fortunes at its US Higher Education division.
The British company has endured a turbulent pandemic.
It was lifted at times by demand for online learning courses and stymied in October when a surge of the Omicron variant and a tight US labour market deterred students from enrolling at community colleges.
Under the leadership of former Disney executive Andy Bird it has sought to broaden its approach beyond traditional education outlets, selling directly to consumers via its Pearson+ app and to businesses looking to train workers.
The group said that approach had helped it enjoy a strong end to the year, with full-year adjusted operating profit now forecast to come in at £385m with organic revenue growth of 8%.
This compared with expectations of £375m and 6.7% growth.
The news is likely to provide a boost to the shares of the British group after they were hit hard in October when it revealed the impact Covid-19 had had on enrolments at US community colleges.
That pressure meant revenues at the US Higher Education Courseware division, often the source of Pearson profit downgrades in the past, were down 9% at the nine month mark, compared with a 2% fall in the first half of the year.
The company said today that the full-year figure would be down 6%.
Pearson said it had enjoyed a strong final quarter in general, with its Assessment & Qualification division sales up 18% for the year.
Its new Pearson+ app, at the heart of a new consumer-focused strategy, has 2.75 million registered users, and 133,000 paid subscriptions.
