Pearson predicts strong trading as ad revenues improve

by Staff,, Brand Republic 30-Apr-04, 08:55

LONDON - Pearson, publisher of the Financial Times, has said it is trading in line with expectations and has predicted a strong outlook for 2005, with prospects the strongest for three years.

In a trading statement issued ahead of the media group's AGM later today, Pearson said that the FT Group is expected to make progress this year, saying that advertising revenues remain volatile from week to week but the overall trend is continuing to improve. Year-to-date revenues, which were down 4% at the beginning of March, are now level with last year and forward bookings are ahead.

The Penguin Group, Pearson's book publishing arm, faces tough comparisons after a record 2003 and results are said to be affected by the weak US dollar. However, the company expects Penguin to grow ahead of its market once again.

Dennis Stevenson, chairman of Pearson, said: "We continue to expect underlying progress in 2004 and looking further ahead, the trading prospects for Pearson are better than at any time in the past three years. Business advertising revenues appear to be stabilising, we have a solid base of new testing contracts and the 2005 US school market will be very strong."

Pearson generates around two-thirds of its revenues in the US. It will report its interim results on July 26 this year.

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