Pearson H1 Loss Widens, Revenues Down; Reiterates Outlook - Quick Facts

(RTTNews) - British publishing and education company Pearson plc (PSO, PSON.L) reported Friday that its first-half loss before tax widened to 306 million pounds from last year's loss of 132 million pounds.

Loss per share was 27.1 pence, compared to loss of 9.7 pence a year ago.

Adjusted loss per share was 1.3 pence, compared to adjusted earning per share of 4.4 pence a year ago, reflecting the lower adjusted operating profit and interest charges.

Sales dropped to 1.866 billion pounds from 1.997 billion pounds a year ago. Sales declined 7% in underlying terms primarily due to the expected declines in assessment revenues in the US and UK.

Revenues declined 11% at constant exchange rates, reflecting underlying revenue declines

Deferred revenues grew 5% in underlying terms.

Further, the company announced that dividend held level at 18 pence, in-line with previous guidance, reflecting the Board's confidence in the medium term outlook.

For fiscal 2016, Pearson reiterated guidance, and continues to expect the earnings per share guidance range will increase by approximately 4 pence, if current exchange rates persist until the end of 2016.

The company's growth and simplification plan is on-track and 2018 goals are unchanged. The company expects adjusted operating profit to be at or above 800 million pounds in 2018.