Pearson Swings To Pre-tax Loss On Restructuring, Sales Up; Shares Climb

(RTTNews) - Shares of British media company Pearson Plc (PSON.L, PSO) climbed about 7 percent Friday morning, as the company reported higher sales in its first half on good growth in education, led by North America and developing markets.

Pearson, however, posted a pre-tax loss for the period, reflecting restructuring charges, despite the increase in sales. Further, the company declared a dividend, and backed its fiscal 2013 earnings view.

John Fallon, chief executive of the company said, "In trading terms, 2013 has begun much as we expected. In general, good growth in our digital, services and developing-market businesses continues to offset tough conditions for traditional publishing."

Pearson noted that its restructuring programme is on track and reorganization of the company is under way, aimed to transform the firm into a single operating company focused on needs in global education.

For the first half, the company posted a pre-tax loss of 4 million pounds, compared to last year's profit of 28 million euros. Adjusted profit before tax was 104 million pounds, while the company posted 157 million pounds last year.

Loss attributable to equity holders was 8 million pounds or 1 pence per share, compared to profit of 36 million pounds or 4.5 pence per share a year ago.

Earnings from continuing operations were 0.4 pence per share, lower than 2.6 pence per share a year earlier. Adjusted earnings per share were 9.9 pence for the recent period. The company said it has restated its prior-year results.

Sales increased to 2.24 billion pounds from 2.14 billion pounds a year ago. Sales were up 5 percent at constant exchange rates. The company experienced good growth in education led by North America and developing markets.

Further, the board has declared an interim dividend of 16 pence per share, up 7 percent from last year.

Looking ahead for the year 2013, the company continues to expect adjusted earnings per share to be broadly level with last year's 82.6 pence under revised IAS 19, before expensing restructuring costs.

PSON.L is currently trading at 1,331.03 pence, up 79.03 pence or 6.31 percent, on a volume of 2.11 million shares.