Pearson posts profit jump as it eyes AI boost
The education giant has announced plans to buy £200 million of shares back from investors.
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Your support makes all the difference.Education giant Pearson has said it is well-positioned to benefit from opportunities in Artificial Intelligence (AI) as it posted a jump in profits.
The company saw shares rise on Friday morning as it also announced plans to buy £200 million of shares back from investors.
Pearson, which has largely shifted from traditional textbooks to digital training, reported a significant rise in operating profit to £498 million in 2023, from £271 million a year earlier, as it benefited from a reduction in restructuring costs.
Omar Abbosh, who joined as chief executive in January from Microsoft, said this was supported by growth in its assessment and qualifications arm as he highlighted the potential from AI.
2023 was another year of strong operational and financial performance
He said: “Pearson is well positioned today, providing a stable platform for continued growth that can benefit from the inflection point we see with the development of AI.
“I am optimistic about the opportunities this advancement in technology brings, underpinned by our trusted brand, large high-quality data sets and strong capabilities in assessment, content and services.”
The company told shareholders that overall sales dipped over the year to £3.67 billion from £3.84 billion in 2022, as it was partly affected by changes to its portfolio and currency movements.
It stressed that underlying sales rose by 5%, as it was buoyed by 7% growth in its assessments and qualifications business, with improvements in healthcare and IT.
Pearson however saw its virtual learning business witness a 20% sales slump after a previously announced contract loss.
Mr Abbosh added: “2023 was another year of strong operational and financial performance, with results surpassing initial expectations once again, driven by our Assessment & Qualifications and English Language Learning businesses.
“Our consistently strong cash generation has sustained investment to support our future growth and deliver ongoing value for shareholders.”