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| - | Pearson PLC ([[New York Stock Exchange|NYSE]]: PSO) is a [[Media & Entertainment|media]] and [[Education in the US|education]] company. The company delivers the content in a range of forms and through a variety of channels, including books, newspapers and online services. It offers services and content, including test creation, administration and processing, and teacher development and school software. | + | '''Pearson PLC''' ([[New York Stock Exchange|NYSE]]: PSO) is a [[Media & Entertainment|media]] and [[Education in the US|education]] company. The company delivers content in a range of formats and channels, including books, newspapers and online services. Pearson offers services and content, including test creation, administration and processing, and teacher development and school software. |
| Pearson's major markets are the United States (59% of sales) and Europe (21% of sales).<ref name=reuters>[http://www.reuters.com/finance/stocks/companyProfile?rpc=66&symbol=PSO Reuters: PSO]</ref> Pearson consists of three worldwide businesses: Pearson Education, The FT Group and The Penguin Group.<ref name=reuters/> | Pearson's major markets are the United States (59% of sales) and Europe (21% of sales).<ref name=reuters>[http://www.reuters.com/finance/stocks/companyProfile?rpc=66&symbol=PSO Reuters: PSO]</ref> Pearson consists of three worldwide businesses: Pearson Education, The FT Group and The Penguin Group.<ref name=reuters/> | ||
| ==Business Growth== | ==Business Growth== | ||
| - | In April 2011, the Company acquired Schoolnet. During the year ended December 31, 2010, Pearson acquired Melorio plc and Sistema Educacional Brasileiro.<ref name=reuters/> | + | In 2010, Pearson's profit rose 21 percent as the company benefited from investments in emerging markets and digital operations.<ref name=bloomberg>[http://www.bloomberg.com/news/2011-02-28/pearson-profit-advances-21-percent-on-emerging-markets-digital-businesses.html Bloomberg: "Pearson 2010 Profit Increases 21% on Emerging Markets, Digital Operations" February 28, 2011]</ref> Sales in 2010 rose 10 percent to 5.66 billion pounds.<ref name=bloomberg/> |
| - | ===Business Segments=== | + | Pearson posted double-digit profit growth in all businesses in 2010, led by a 54% increase at the FT Group, which publishes the Financial Times.<ref name=bloomberg/> Digital revenue accounts for 29% of the company’s sales, and emerging markets makes up 10%.<ref name=bloomberg/> |
| - | ====Pearson Education==== | + | Pearson's strong earnings reflect the growing demand for educational services from emerging economies and in digital formats. |
| - | Pearson Education is a provider of educational materials and learning technologies. It provides test development, processing and scoring services to governments, educational institutions, corporations and professional bodies’ worldwide. It publishes across the curriculum and provides a range of education services, including teacher development, educational software and system-wide solutions. | + | In 2010 sold its 61% stake in Interactive Data for $3.4 billion and has since used some of the proceeds to expand through acquisitions, focusing on technology and education.<ref name=reuters/> In April 2011, the Company acquired Schoolnet. During 2010, Pearson acquired Melorio plc and Sistema Educacional Brasileiro.<ref name=reuters/> |
| + | ==Trends and Forces== | ||
| - | ====The FT Group==== | + | ===Demand for educational services is growing in emerging markets=== |
| + | As a board we debated | ||
| + | and approved Pearson’s largest disposal ever: the | ||
| + | $2.0bn sale of our stake in Interactive Data to Silver | ||
| + | Lake and Warburg Pincus. We looked at all the | ||
| + | acquisitions that the company made during the year | ||
| + | – including significant investments to expand our | ||
| + | position in fast-growing developing markets such as | ||
| + | Brazil, India and Africa. And we also, as a matter of | ||
| + | routine, revisited acquisitions made in prior years to | ||
| + | assess their performance against the plans originally | ||
| + | laid out for them. In 2010, in addition to reviewing | ||
| + | returns and lessons learned from capital allocation | ||
| + | decisions over the past seven or so years, | ||
| + | we conducted detailed post-acquisition reviews | ||
| + | of acquisitions completed during 2008. | ||
| - | The FT Group provides a range of data, analysis and services to an audience of internationally-minded business people and financial institutions. FT Group consists of the Financial Times, FT.com Website, and a portfolio of financial magazines and online financial information companies. The Financial Times is an international daily business newspaper, with five editions in the United Kingdom, Europe, Middle East and Africa, the United States and Asia. Its main sources of revenue are from sales of the newspaper, advertising and conferences. The Financial Times is complemented by FT.com, which sells content and advertising online, and which charges subscribers for detailed industry news, comment and analysis, while providing general news and market data. | ||
| - | ====The Penguin Group==== | ||
| - | Penguin publishes over 4,000 fiction and non-fiction books each year, on paper, screens and in audio formats for readers of all ages, and has a range of backlist and frontlist titles, including top literary prize winners, classics, reference volumes and children’s titles. Penguin operates worldwide through a series of connected national publishing houses. | ||
| - | ==Trends and Forces== | + | Pearson today has an important presence in many of |
| + | these fast-growing markets: language schools in China; | ||
| + | Sistemas and Penguins in Brazil; universities in South | ||
| + | Africa; online tutoring in India, to name just four | ||
| + | examples. We won’t slight our strong developed world | ||
| + | businesses, but you can expect to see us investing and | ||
| + | picking up speed in these newer places. And you can | ||
| + | figure out that to do that we’ll need to get better | ||
| + | and faster at moving our intellectual talent all around | ||
| + | the world, not just from West to East, and North | ||
| + | to South, not just to the next step on the ladder, | ||
| + | but to build a new ladder entirely. | ||
| + | |||
| + | ===The rise of e-readers has created new sales channels=== | ||
| + | Though ebooks have been around for more than two | ||
| + | decades, I suspect publishers of all kinds will look back | ||
| + | on 2010 as the ‘lift-off’ for digital reading. Apple with | ||
| + | its iPad sparked a lot of the buzz. But the real | ||
| + | phenomenon was the quick emergence of a symbiotic | ||
| + | community of multi-purpose devices, ebook formats | ||
| + | and sales channels. There’s now genuine consumer | ||
| + | demand for high-quality digital reading (and learning) | ||
| + | experiences, and we’re beginning to deliver them | ||
| + | in earnest. | ||
| + | At Penguin, for example, ebook sales almost trebled | ||
| + | over the course of 2010 (having increased four-fold in | ||
| + | 2009) and now represent more than $1 in every $20 of | ||
| + | Penguin’s total global sales (and much more in the US). | ||
| + | At the FT, another example, digital subscribers topped | ||
| + | 200,000 as the year ended, and also brought in more | ||
| + | print subscribers. And in our education companies, | ||
| + | demand for our combination of ebooks and our digital | ||
| + | learning platforms – eCollege, MyLabs, to name only | ||
| + | two – has been growing fast, but this past year that | ||
| + | pace exploded. | ||
| + | In fact across Pearson, just as we see developing | ||
| + | economies growing several times faster than those | ||
| + | in the developed world, so we see a similar contrast | ||
| + | between our digital services and our more traditional, | ||
| + | print-only products. | ||
| + | |||
| ==Competition== | ==Competition== | ||
Revision as of 14:22, July 17, 2011
Pearson PLC (NYSE: PSO) is a media and education company. The company delivers content in a range of formats and channels, including books, newspapers and online services. Pearson offers services and content, including test creation, administration and processing, and teacher development and school software.
Pearson's major markets are the United States (59% of sales) and Europe (21% of sales).[1] Pearson consists of three worldwide businesses: Pearson Education, The FT Group and The Penguin Group.[1]
Contents |
Business Growth
In 2010, Pearson's profit rose 21 percent as the company benefited from investments in emerging markets and digital operations.[2] Sales in 2010 rose 10 percent to 5.66 billion pounds.[2]
Pearson posted double-digit profit growth in all businesses in 2010, led by a 54% increase at the FT Group, which publishes the Financial Times.[2] Digital revenue accounts for 29% of the company’s sales, and emerging markets makes up 10%.[2]
Pearson's strong earnings reflect the growing demand for educational services from emerging economies and in digital formats.
In 2010 sold its 61% stake in Interactive Data for $3.4 billion and has since used some of the proceeds to expand through acquisitions, focusing on technology and education.[1] In April 2011, the Company acquired Schoolnet. During 2010, Pearson acquired Melorio plc and Sistema Educacional Brasileiro.[1]
Trends and Forces
Demand for educational services is growing in emerging markets
As a board we debated and approved Pearson’s largest disposal ever: the $2.0bn sale of our stake in Interactive Data to Silver Lake and Warburg Pincus. We looked at all the acquisitions that the company made during the year – including significant investments to expand our position in fast-growing developing markets such as Brazil, India and Africa. And we also, as a matter of routine, revisited acquisitions made in prior years to assess their performance against the plans originally laid out for them. In 2010, in addition to reviewing returns and lessons learned from capital allocation decisions over the past seven or so years, we conducted detailed post-acquisition reviews of acquisitions completed during 2008.
Pearson today has an important presence in many of
these fast-growing markets: language schools in China;
Sistemas and Penguins in Brazil; universities in South
Africa; online tutoring in India, to name just four
examples. We won’t slight our strong developed world
businesses, but you can expect to see us investing and
picking up speed in these newer places. And you can
figure out that to do that we’ll need to get better
and faster at moving our intellectual talent all around
the world, not just from West to East, and North
to South, not just to the next step on the ladder,
but to build a new ladder entirely.
The rise of e-readers has created new sales channels
Though ebooks have been around for more than two decades, I suspect publishers of all kinds will look back on 2010 as the ‘lift-off’ for digital reading. Apple with its iPad sparked a lot of the buzz. But the real phenomenon was the quick emergence of a symbiotic community of multi-purpose devices, ebook formats and sales channels. There’s now genuine consumer demand for high-quality digital reading (and learning) experiences, and we’re beginning to deliver them in earnest. At Penguin, for example, ebook sales almost trebled over the course of 2010 (having increased four-fold in 2009) and now represent more than $1 in every $20 of Penguin’s total global sales (and much more in the US). At the FT, another example, digital subscribers topped 200,000 as the year ended, and also brought in more print subscribers. And in our education companies, demand for our combination of ebooks and our digital learning platforms – eCollege, MyLabs, to name only two – has been growing fast, but this past year that pace exploded. In fact across Pearson, just as we see developing economies growing several times faster than those in the developed world, so we see a similar contrast between our digital services and our more traditional, print-only products.
Competition
- News Corporation (NWS)
- Reed Elsevier (RUK)
- New York Times Company (NYT)
- McGraw-Hill Companies (MHP)
- Gannett (GCI)
- Reed Elsevier NV (ENL)
- Scholastic (SCHL)
- Lee Enterprises (LEE)
- John Wiley & Sons CL A (JWA)
References
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