Segmental Analysis

RNS Number : 7317K
Pearson PLC
27 June 2014
 



 

Press release

27 June 2014

 

PEARSON: NEW SEGMENTAL ANALYSIS

Pearson will announce its interim results for the six months ended 30 June 2014 on Friday 25 July 2014.

As we stated at our AGM (bit.ly/1qL33ej), Pearson's profits are heavily weighted to the second half.  As expected, our first-half adjusted operating profit and adjusted earnings per share will be lower this year than in 2013, primarily reflecting the outlook given at our full-year results which included: the appreciation of sterling against the US dollar and key emerging market currencies; the phasing of Penguin Random House integration charges and the incremental H1 associate accounting impact of owning 47% of Penguin Random House compared to 100% of Penguin in H1 2013; the disposal of Mergermarket; the H1 phasing of reduced assessments in Texas and California; the later phasing of marking of UK exams and associated revenue recognition; and the phasing of restructuring charges, particularly in our North American Education division.

As previously announced, we will report the results using two new segmental analyses which reflect our new structure and operating model: Geographies (North America, Core and Growth) and Lines of Business (School, Higher Education and Professional).

We are today providing details of our 2013 financial results by the new Geographic segments analysis, which most closely match our previous reporting structure. On 25th July 2014, we will also provide revenues and operating income by Line of Business.

Our Geographic segments comprise our school, higher education and professional learning services, inside services and direct delivery in:

·  North America: the US and Canada;

·  Core: including the United Kingdom, Australia and Italy; and

·  Growth: including Brazil, China, India and South Africa.



Our 2013 results under this new segmental analysis were as follows:

£ millions

Half year 2013

Full year 2013

Sales



North America

1,243

3,080

Core

616

1,242

Growth

331

747

Continuing sales

2,190

5,069

Penguin

513

513

Mergermarket

53

108

Total sales

2,756

5,690

Adjusted operating profit*



North America

29

457

Core

55

119

Growth

12

56

Adjusted operating profit excluding Penguin / Penguin Random House & Mergermarket

96

632

Penguin / Penguin Random House

28

78

Mergermarket

13

26

Total adjusted operating profit

137

736




* Half year 2013 includes £29m net restructuring charges as follows: North America, £8m; Core, £16m; Growth, £5m. Full year 2013 includes £135m net restructuring charges as follows: North America, £53m; Core, £50m; and Growth, £32m.

These are preliminary estimates which are subject to audit which may result in adjustments.

Our Line of Business segments will be reported at our interim results on 25 July 2014 and will include:

·  School;

·  Higher Education; and

·  Professional (which includes Pearson VUE, the Financial Times and global English Language Learning).

ENDS



For more information:

Simon Mays-Smith / Brendan O'Grady                                + 44 (0)20 7010 2310

Note to editors:

Our 2013 results, as reported under the previous segmental analysis, were as follows:

£ millions

Half year 2013

Full year 2013

Sales



North American Education

1,102

2,779

International Education

736

1,539

Professional

188

410

FT Group

217

449

Sales excluding Penguin / Penguin Random House

2,243

5,177

Penguin

513

513

Total sales

2,756

5,690

Adjusted operating profit**



North American Education

13

406

International Education

50

140

Professional

20

57

FT Group

26

55

Total excluding Penguin / Penguin Random House

109

658

Penguin / Penguin Random House

28

78

Total adjusted operating profit

137

736




** Half year 2013 £29m net restructuring charges as follows: North American Education, £7m; International Education, £18m; FT Group, £4m. Full year 2013 includes £135m net restructuring charges as follows: North American Education, £49m; International Education, £69m; Professional Education, £6m, FT Group, £11m.


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