Pearson sees sales boost thanks to resurgence in English language learning

The FTSE 100 firm said sales growth was driven by a recovery from the pandemic in English language learning and normalization of the exam schedule.

It hailed a “solid” financial position and stood firm on its full-year sales and profit.

In the first nine months of the year, the English language learning publisher’s sales were up 28% year-on-year as “global mobility continues to improve as borders open,” it said.

In particular, the amount of English language learning has grown dramatically in India and in the Australia where there was a temporary extension of post-study visa applications.

But Pearson warned there would be “tougher comparisons” in the final three months of the year as a result of the opening of borders late last year.

Sales across the Assessment and Qualifications department jumped 12%, with a continued focus on health and wellness driving clinical assessment books.

Only its higher education division suffered a 4% decline, due to a drop in the US, where Pearson has its largest market.

The publisher said last year that a strong U.S. job market had tempted would-be students to abandon further education and move into work, hurting sales.

Executive Director Andy Bird said: “It was another good quarter for Pearson and I am pleased with the continued momentum the business is demonstrating through our sharp delivery focus.

“We are well on track with our plan to accelerate margin growth.

“We believe that Pearson is well positioned for the future and we are confident that we will be able to navigate the challenging macroeconomic environment.

“We are making significant progress in building a digital learning ecosystem that can serve many more people throughout their lives.”

The publisher’s shift to digital books and virtual learning has made it more resilient to supply chain issues and rising commodity prices.

It also implemented cost-cutting plans that are expected to improve the group’s profitability between 2023 and 2025.

Pearson expects to make an average operating profit of £416m, but he stressed that profit is highly sensitive to changes in the value of the US dollar.

The US dollar has strengthened in recent months against the weakening of the British pound, fueled by turmoil in the UK market.