26.04.13 | Joshua Farrington - The Bookseller
Pearson has reported a first quarter in line with their expectations, with Penguin seeing “a good start to the year”.
The education company saw sales, including Penguin, rising by 3% for the three months ended March 31st 2013, to £1.2bn, a headline increase of 4%, with an underlying decline of 1%.
According to the report, Penguin has seen: “market share gains in all key territories boosted by bestsellers from Harlan Coben, Nora Roberts, Jamie Oliver and John Green.”
The report said: “We expect the external environment to remain challenging for our developed world and publishing businesses in 2013 owing to a combination of cyclical and structural factors: pressures on education budgets and college enrolments; retail consolidation; the shift in our business model from print sales to digital subscriptions; changing consumer behaviour and a dynamic competitive landscape. In general, we expect market conditions to remain favourable for our businesses in developing economies and education software and services.”
It also reiterates Pearson’s plans to restructure the company in a shift costing approximately £150m in 2013, which has two aims, to “accelerate our transition from print to digital models and from developed to developing economies”, and to “separate Penguin activities from Pearson central services and operations.”
The report notes that clearance for the Penguin Random House merger has now been approved in the US, Australia, New Zealand, the EU and Canada, with the transaction due to close “early in the second half of 2013 after all necessary approvals have been received.”
Pearson said it expects 2013 operating profits to be broadly level with 2012 before restructuring costs are taken into account, with the profits heavily weighted to the second half of the year.
Pearson’s AGM takes place today at the Institute of Engineering and Technology in London.
The education company saw sales, including Penguin, rising by 3% for the three months ended March 31st 2013, to £1.2bn, a headline increase of 4%, with an underlying decline of 1%.
According to the report, Penguin has seen: “market share gains in all key territories boosted by bestsellers from Harlan Coben, Nora Roberts, Jamie Oliver and John Green.”
The report said: “We expect the external environment to remain challenging for our developed world and publishing businesses in 2013 owing to a combination of cyclical and structural factors: pressures on education budgets and college enrolments; retail consolidation; the shift in our business model from print sales to digital subscriptions; changing consumer behaviour and a dynamic competitive landscape. In general, we expect market conditions to remain favourable for our businesses in developing economies and education software and services.”
It also reiterates Pearson’s plans to restructure the company in a shift costing approximately £150m in 2013, which has two aims, to “accelerate our transition from print to digital models and from developed to developing economies”, and to “separate Penguin activities from Pearson central services and operations.”
The report notes that clearance for the Penguin Random House merger has now been approved in the US, Australia, New Zealand, the EU and Canada, with the transaction due to close “early in the second half of 2013 after all necessary approvals have been received.”
Pearson said it expects 2013 operating profits to be broadly level with 2012 before restructuring costs are taken into account, with the profits heavily weighted to the second half of the year.
Pearson’s AGM takes place today at the Institute of Engineering and Technology in London.
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