HOBOKEN, N.J., Aug. 28, 2024 /PRNewswire/ -- Get ready for a game-changing semester. Pearson (FTSE: PSON.L), the world's lifelong learning company, has launched a suite of new AI-powered higher education tools designed to make student learning and studying more personalized. As college students seek simpler, more efficient ways to study that consider their unique needs, Pearson's AI tools create a frictionless study experience where students can get the individualized help they need without leaving their eT ...

Financial Data and Key Metrics - Underlying sales excluding OPM increased by 2%, and adjusted operating profit rose by 4% to £250 million in H1 2024 [27] - Earnings per share remained flat at 25.6p, with higher net interest costs offset by the impact of the reduced share count due to the share buyback [27] - Operating cash flow increased by £50 million YoY, and free cash flow rose by £77 million, driven by strong underlying fundamentals and the phasing out of reorganization costs [28] - Net debt stood at £1.2 billion as of June 2024, up £0.3 billion YoY, primarily due to the £500 million share buyback and dividends, partially offset by strong free cash flow [29] - The interim dividend was proposed to increase by 6% to 7.4p, reflecting strong performance and confidence in the outlook [29] Business Line Performance - **Assessments and Qualifications**: Grew by 2%, driven by growth in VUE, clinical, and UK/International Qualifications, partially offset by a small decline in US student assessments [30] - **Virtual Schools**: Sales declined by 1% due to previously announced contract losses, but the division is expected to return to growth in 2025 [31] - **Virtual Learning**: Sales decreased by 8%, mainly due to the final portion of the OPM ASU contract in H1 2023 [32] - **Higher Education**: Sales declined by 2%, but there are encouraging signs of progress with small market share gains and growth in core text units, US digital subscriptions, and Inclusive Access [33] - **English Language Learning**: Grew by 11%, driven by strong growth in Institutional and Mondly, offsetting a decline in PTE sales [36] - **Workforce Skills**: Grew by 6%, with strong performances in Vocational Qualifications, GED, and Credly [38] Market Performance - **Higher Education**: Expected to return to growth in H2 2024, with Pearson+ performing well, reaching 5 million registered users and 1.1 million paid subscriptions, representing 18% growth [34] - **English Language Learning**: Market share gains in PTE despite a declining market, with expectations of high single-digit sales growth for the division [37] - **Workforce Skills**: Strong growth in Vocational Qualifications and GED, with a focus on expanding enterprise solutions [38] Strategic Direction and Industry Competition - The company is focusing on two powerful secular trends: demographic shifts and the growth of AI, which are expected to drive demand for verified skills and talent management [46] - Pearson is targeting higher-growth markets worth $80 billion, growing at 5% or more, compared to its current $15 billion markets growing at 2% [47][51] - The company is transitioning from a holding company to an operating company, with a focus on organic growth, execution, and strategic partnerships [48][49] - AI is a key strategic priority, with investments in AI-driven product innovation and customer service enhancements [57][58] Management Commentary on Operating Environment and Future Outlook - Management is confident in achieving mid-single-digit underlying sales growth and sustained margin improvement, with a focus on Assessments and Verifications, Early Careers, and Enterprise Skills [76][77] - The company expects to maintain strong free cash flow conversion in the range of 90% to 100% and a net debt-to-EBITDA ratio of around 2x [78] - AI is seen as a tool to accelerate value and growth, with significant potential for cost savings and productivity improvements [57][58] Other Important Information - The company has identified opportunities for cost savings through technology-enabled initiatives, including AI, which are expected to unlock tens of millions of pounds in savings over the medium term [80] - Pearson is focusing on strategic partnerships and M&A to accelerate growth, with a disciplined approach to capital allocation [84][85] Q&A Session Summary Question 1: Growth Guidance and Restructuring Costs - The company clarified that the 2% growth figure refers to its core markets, while the mid-single-digit growth target is driven by higher-growth adjacent markets [104][105] - Restructuring costs will be reported above the line, with savings expected to materialize within six months to a year [110][111] Question 2: Higher Education and ELL Performance - Higher Education is expected to return to growth in H2 2024, driven by improved sales operations and product stability [116][117] - In ELL, the company is confident in maintaining high single-digit growth, with strong performance in Institutional and Mondly offsetting PTE declines [128][129] Question 3: Cost Savings and Market Share - The company is leveraging AI and technology to drive cost savings, particularly in customer services and content generation [134][138] - Market share analysis shows significant growth potential in higher-growth segments, with a focus on expanding into $80 billion markets [144][145] Question 4: Revenue Synergies and Workforce Skills - The company sees significant opportunities for revenue synergies through bundling and cross-selling, particularly in Assessments and Verifications [153][154] - Workforce Skills is focused on talent planning, sourcing, and development, with a modular approach to solutions [159][160] Question 5: AI and Strategic Partnerships - AI is seen as a key driver of adoption and engagement, with significant potential to enhance the learning experience [167][168] - The company is open to strategic partnerships, particularly in AI and technology, to accelerate innovation and growth [190][191]

Pearson+ Channels Video ImagePearson+ Channels Video Image Tony Prentice, Chief Product Officer, said: "It's encouraging to see students so actively engaged with our AIpowered tools, embracing this massive change in the technology landscape and driving new demand. Our unique approach combines AI with our trusted content to unlock new ways to personalize learning and teaching that will help people realize the life they imagine through learning." About Pearson Media contact Dan Nelson ([email protected]) Sami ...

The cash outflow in the first half of 2023 relating to acquisitions of subsidiaries was £173m arising primarily from the acquisition of PDRI. In addition, there was a cash outflow relating to the acquisition of associates of £5m and investments of £6m. Businesses disposed The Group made no disposals of subsidiaries in H1 2024. In 2024, the cash outflow relating to costs paid in relation to the disposal of businesses in prior years was £6m. The cash outflow in the first half of 2023 relating to the disposal ...

Pearson to deliver new online UK Government learning experience platform As well as creating a single 'front door' for all pan-government learning, the platform will enable users to create a profile to capture their skills and track completed learning. This will be used to generate personalised training recommendations based on the skills they would like to develop further. "Our ambition is to provide a great user experience for all government employees, empowering them to take charge of their own training ...

HOBOKEN, N.J., July 18, 2024 /PRNewswire/ -- As student usage of generative AI surges in higher education, many instructors report lacking an understanding of how AI can support their teaching. To address this gap, Pearson (FTSE: PSON.L), the world's lifelong learning company, today announced a new generative AIpowered tool for instructors. Pearson Unveils AI Tool to Help Educators Save Time and Prioritize Student LearningPearson Unveils AI Tool to Help Educators Save Time and Prioritize Student Learning "G ...

Partnership to offer unique workforce experiences, insight into growing fields and opportunities, as well as connection to collegiate and industry partners HOBOKEN, N.J., June 20, 2024 /PRNewswire/ -- Pearson (FTSE: PSON.L) and its Connections Academy, the fully online public school program serving K-12 students, announced today a strategic partnership with the SEMI Foundation, the 501(c)(3) arm of SEMI, a global industry association representing the electronics manufacturing, semiconductor, and design supp ...

CHANTILLY, Va., June 17, 2024 /PRNewswire/ -- PDRI by Pearson (FTSE: PSON.L), a workforce assessment provider that transforms evidence-based insights into talent management solutions, has been awarded a Top Workplaces 2024 honor by Washington Post Top Workplaces. This list is based solely on employee feedback gathered through a third-party survey administered by employee engagement technology partner Energage LLC. The confidential survey uniquely measures the employee experience and its component themes, in ...

TORONTO, June 03, 2024 (GLOBE NEWSWIRE) -- ARHT Media Inc. ("ARHT" or "the Company") (TSXV: ART), (OTCQB: ARHTF) the global leader in the development, production and distribution of high-quality, low latency hologram and digital content, is excited to announce that ARHT CAPSULE will be featured in Paradies Lagardère's newest retail engagement, The Goods Express@YYZ, at Toronto Pearson International Airport. This innovative, checkout-free retail experience also includes Amazon's Just Walk Out technology, sho ...

At an individual level, even small amounts of time saved with generative AI can help people feel more in control of their job and achieve a better work life balance. HOBOKEN, N.J., May 22, 2024 /PRNewswire/ -- New research from Pearson (FTSE: PSON.L), the world's leading learning company, shows the massive potential of Generative AI to boost workplace productivity by helping US workers to save 78 million hours a week on the routine and repetitive tasks that often fill their day and lead to burnout. The late ...