Pearson PLC shares jumped on Monday after the company lifted its dividend as its profit for the first half of 2022 surged.
Pearson shares were trading 7.1% higher at 810.00 pence each in London on Monday morning.
The London-based education publisher reported pretax profit of £179 million for the six months to June 30, multiplied from £4 million a year before, as operating expenses fell 7.3% to £690 million from £744 million.
Pearson had booked £85 million in restructuring costs a year earlier. Adjusted operating profit was 26% higher year-on-year at £160 million from £127 million.
Revenue rose 12% year-on-year to £1.79 billion from £1.60 billion.
The FTSE 100 listing contributed the growth to portfolio changes, currency movements, and a robust underlying performance across all businesses that are currently not under strategic review.
Underlying sales in Pearson’s English Language Learning business grew 22% as easing Covid curbs drove growth in the Pearson Test of English, a language test from the company.
Pearson lifted its interim dividend by 4.8% to 6.6 pence from 6.3p year-on-year.
Pearson backed its full-year expectations for revenue and adjusted operating profit.
In February, Pearson said that it is confident of further revenue growth, with adjusted operating profit, interest and tax expected to be in line with current market expectations for 2022.
In addition, the company reported that it has completed £165 million of its £350 million share buyback programme as of Friday last week.
The education publisher is launching a strategic review of its Online Program Management business, which is part of its Virtual Learning segment. The OPM review comes ahead the end of Pearson’s contract with Arizona State University next June.
Pearson back in April said its Online Program Management partnership with ASU will end in June 2023. It gave no reason for the termination of the 10-year collaboration, which saw Pearson help the university expand its online learning services.
‘Pearson has delivered another encouraging financial performance in the first half of the year. We continue to make excellent strategic and operational progress, with momentum across the business. We are already seeing clear benefits from our increasingly diverse learning ecosystem,’ Chief Executive Andy Bird said.
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