Pearson Not Looking at Acquisitions as Streamlining Continues -CFO

By Adria Calatayud

Pearson PLC (PSON.LN) still has work do to streamline its operations and isn't at a stage of considering acquisitions, Chief Financial Officer Coram Williams said Friday in an interview with Dow Jones Newswires.

Mr. Williams's comments came after the London-based education company posted a set of first-half results that topped analysts' expectations and raised its adjusted earnings per share guidance for the full year, sending Pearson shares up nearly 6% in afternoon trade.

The company's simplification program, which targets cost savings of 330 million pounds ($411.6 million) by the end of 2019, is coming to an end, Mr. Williams said. The plan has allowed Pearson to invest in its digital operations, he said.

Pearson last week said it will shift toward a "digital first" model, and away from print, in its U.S. higher-education publishing operations. This will result in further savings in the short term as it will reduce the cost of developing content, Mr. Williams said.

Mr. Williams said Friday the company will also launch a consumer-facing app called Aida for mathematics learning in the fourth quarter.

Pearson's CFO said the company feels confident as it enters the second half of the year, as its areas of structural growth--virtual universities, virtual schools, professional certification and English tests--are gaining momentum while pressures on the rest of the business are abating.

Write to Adria Calatayud at [e-mail]

(END) Dow Jones Newswires

July 26, 2019 10:28 ET (14:28 GMT)

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