Pearson 2016 Net Loss Widens Amid Tough US, UK Markets --Update

By Rory Gallivan

LONDON--Pearson PLC (PSON.LN) reported a wider full-year net loss after incurring a big impairment charge to reflect tough conditions in the U.K. and U.S. education markets.

The educational publishing company Friday reported a net loss of 2.56 billion pounds ($3.19 billion) for 2016, compared with a GBP433 million loss in 2015. Revenue rose to GBP4.55 billion from GBP4.47 billion, but fell 8% when stripping out factors such as currency moves.

The loss includes an impairment charge of GBP2.55 billion to cover expected tougher conditions in the U.S. education market.

The final dividend was maintained at 34 pence but Pearson reiterated plans to reduce it in 2017, without saying by how much.

Shares in Pearson tumbled last month when it warned of weak 2016 earnings and said it aims to sell its stake in book publisher Penguin Random House.

Pearson, whose recent portfolio adjustment has most notably involved the sale of the Financial Times newspaper in 2015, also said Friday that it will explore the sale of its English test preparation business, Global Education, which it bought for $155 million in 2011.

"You can expect us to continue to simplify the portfolio," Chief Executive John Fallon told reporters.

At 0922 GMT, its shares were down 14 pence, or 2.2%, at 633 pence, valuing the company at GBP5.31 billion.

-Write to Rory Gallivan at [e-mail]; Twitter: @RoryGallivan

(END) Dow Jones Newswires

February 24, 2017 04:51 ET (09:51 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.