The FINANCIAL — British publisher Pearson PLC, owner of the Financial Times newspaper said on March 1 that its 2009 net profit rose 45 % to 425 million pounds ($645 million) from 292 million pounds.
Net profit rose to 425 million pounds ($632 million) in 2009 from 292 million pounds a year earlier, while revenue rose 16.6 percent to 5.6 billion pounds from 4.8 billion pounds,AP reports. The closely watched adjusted operating profit figure was 858 million pounds and earnings per share were 65.4 pence.
FT Publishing said it expected to sustain good renewal rates for its print and digital subscriptions, Guardian wrote. "Advertising revenues, which in 2009 accounted for less than 3% of total Pearson revenues, remain highly unpredictable but we expect to see some stabilisation after the sharp declines across the industry in 2009."
The company said it had "significantly shifted its business towards digital and subscription revenues" by selling newpapers including Les Echos in France and FT Deutschland in Germany so it could buy digital business with "international opportunities" including Mergermarket and Medley Global Advisors, according to the same source. Digital products and services accounted for £1.7bn in revenues – more than 30% of Pearson's sales – more than double the total five years ago.
The group also declared a final shareholder dividend of 23.3 pence per share, taking the total for 2009 to 35.5 pence. That compares with 33.8 pence in 2008, AFP reports.
"We seized the big opportunity to take share in a tough climate, and we increased sales and profits while investing heavily in the future," Chief Executive Marjorie Scardino said in the release, according to the same source. "We're ready to keep growing, because we're the leader in dynamic markets where there is great demand for learning, skills and information."
The 2009 earnings were also boosted by the strength of the U.S. dollar against the British pound — the group generates 60 percent of its sales in dollars — a theme Jackson said was likely to have continued into the start of 2010, AP reports. Pearson said advertising revenues were "highly unpredictable" but that it expects to see some stabilisation at its FT Publishing division after the sharp declines across the industry in 2009.
According to the same source, Ad revenues at the operation, which includes the national newspaper and the company's 50 percent stake in the Economist magazine, now account for less than 3 percent of Pearson's total turnover.
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