Pearson upgrades outlook, says AI tools get good feedback
The educational publisher saw its shares rise on Monday morning.
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Your support makes all the difference.Educational publisher Pearson upgraded its outlook for the year on Monday as it revenue continued to grow in the third quarter.
The business said that it now expects adjusted operating profit to reach between £570 million and £575 million, around £20 million higher than previous expectations. It said that revenue growth will be at the higher range of what it had previously guided.
Analysts had previously expected the company to make around £552 million, according to a consensus forecast provided by Pearson.
The news sent shares up 1.5% as markets opened on Monday morning.
Bosses also said that Pearson’s higher education business is on track to return to growth next year, as planned.
This third quarter performance illustrates the continuing momentum across our businesses
It said that initial feedback on new generative artificial intelligence (AI) tools that it has launched is “positive,” and that it is trying to create new AI capabilities.
The company’s subscription service for textbooks, Pearson+, saw a 30% jump in subscription numbers at the end of September compared to a year earlier.
Chief executive Andy Bird said: “This third quarter performance illustrates the continuing momentum across our businesses, led by Pearson VUE and Pearson Test of English.
“Our Higher Education business reported as expected and remains on plan to return to growth next year.
“We’ve received positive initial feedback from our Generative AI tools and are evolving our AI capabilities to create further opportunities to maximise the potential of our trusted, proprietary content and data sets.”
The company confirmed on Monday that Mr Bird will leave his position in early January, handing over to new chief executive Omar Abbosh. He will stay with the firm until the end of March to help with the handover.