FT boosted by demand for premium content as profits rise

by Staff, Brand Republic 02-Mar-09, 08:55

LONDON - The Financial Times Group reported a 13% rise in profits as growth of digital and subscription businesses and strong demand for premium content exceeded the decline in advertising revenues.

At the FT Group profits rose to £195m, as owner Pearson reported its preliminary results.

Pearson said that in the fourth quarter at the Financial Times Group continued to achieve good growth -- in particular at interactive data and mergermarket.

FT Publishing saw a decline in advertising revenues, which now account for 4% of Pearson's sales, and said it anticipated a tough year for advertising, but strong renewal rates in its subscription businesses.

In January the Financial Times said it was to make up to 80 staff redundant across several departments, but will continue to invest in its flagship website FT.com.

Marjorie Scardino, chief executive, said: "Over the past five years, Pearson has produced steadily rising sales, profits, earnings, cash and returns. We are particularly pleased to have continued that record in 2008 in the face of a sharp economic downturn.

"This is the result of steady investment and execution of our strategy over the long-term.

"We don't expect economic conditions to improve any time soon, but we do expect our company to remain hardy and aggressive."

Pearson's sales increased 8% to £4.8bn and adjusted operating profits rose 11% to a record £762m as every part of the company contributed to the growth, with adjusted operating profit at Penguin up 4% and up 11% at Pearson Education.