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Pearson Sees No Revival In Financial Sector

Pearson Sees No Revival In Financial Sector

Pearson, publisher of the Financial Times, has said that it does not expect to witness an upturn in ad sales at the title next year. This follows news that advertising revenues at the FT were down 11% in the second half of 2002.

The FT Group, which includes the Investors Chronicle and a number of other business magazines, has been hit particularly hard by the advertising recession (see ‘Prolonged And Deep’ Ad Recession At FT Group Hits Pearson) and full-year profits are predicted to be around 20% lower than last year.

“At the FT Group, we are planning on the basis that we will not see any recovery in corporate and financial advertising,” said Pearson in its December trading update. This echoes the sentiments of Dow Jones which has seen advertising volume slump at the Wall Street Journal in the last two years (see Dow Jones Sees Improving Conditions, Losses Stabilised).

Pearson did find a silver lining in the shape of its education division, which accounts for almost 60% of the company’s revenue, and is expected to report a 5% increase in sales this year. As a result, the company expects to deliver full-year earnings of around 30p per share, an increase of 40% on the 2001 figure.

The market was not to be reassured and shares in Pearson were down 27.5p at 631.5p at noon today.

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