Pearson, the educational publisher, has predicted that artificial intelligence (AI) will revolutionise the market despite a drop in sales in the first half of the year. The London-based company reported sales of £1.75bn from January to July, a decrease from £1.88bn during the same period last year.
However, on an adjusted basis, operating profit remained steady at £250m. Pearson stated that its outlook for profit, sales and tax was “in line” with market expectations, with interest around £45m and free cash flow conversion between 95 to 100 per cent.
CEO Omar Abbosh highlighted “significant demographic shifts” and “rapid advances in AI” as key growth drivers in education in the coming years, as reported by City AM.
He said: “We are implementing plans across all of our businesses that will see us deliver better products and services with greater efficiency,” He also mentioned a focus on opportunities to expand their presence in larger and higher growth markets, particularly early careers and enterprise skilling.
Despite average results, Pearson investors can expect a generous dividend of 7.4p per share, a six per cent increase year-on-year. The company also announced that a £500m share buyback programme was “substantially complete.”
The board approved a £300m scheme in September, with an additional £200m extension in March.
The FTSE 100 company, Pearson, has announced that it has repurchased approximately 28 million shares at a cash cost of £278 million to date. Pearson’s shares have seen an increase of over eight per cent this year.
