Pearson: shares drop after lackluster results
(CercleFinance.com) - Pearson posted a half-year operating loss of 23 million pounds as the Covid-19 impact on sales could not be totally offset by cost savings.
The British education company said its adjusted operating profit declined by 167 million pounds from the 144 million pounds posted one year earlier, with Covid biting off an estimated 140 million from earnings.
Sales decreased by 18% to 1.5 billion pounds, notably due to the disposal of publisher Penguin Random House.
But Pearson said that it is "encouraged" by improving trends and the recent pick up in sales.
"After deterioration from March to May we saw improving sales trends in June," the company noted, adding that it is on track to deliver full-year operating profit that is "broadly consistent" with market expectations.
Investors sighed on hearing the report, with the London-listed shares down 4% in morning trading.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The British education company said its adjusted operating profit declined by 167 million pounds from the 144 million pounds posted one year earlier, with Covid biting off an estimated 140 million from earnings.
Sales decreased by 18% to 1.5 billion pounds, notably due to the disposal of publisher Penguin Random House.
But Pearson said that it is "encouraged" by improving trends and the recent pick up in sales.
"After deterioration from March to May we saw improving sales trends in June," the company noted, adding that it is on track to deliver full-year operating profit that is "broadly consistent" with market expectations.
Investors sighed on hearing the report, with the London-listed shares down 4% in morning trading.
Copyright (c) 2020 CercleFinance.com. All rights reserved.