Pearson Reports Positive Trading Update

Investing.com — Pearson's (LON:PSON) shares rose on Tuesday following the release of its nine-month trading update, signaling continued progress across all operational divisions.

At 8:53 am (12:53 GMT), Pearson was trading 2.9% higher at £1,103.

The education company reported a 3% underlying sales growth for the first nine months of 2024, with a stronger 5% growth recorded in the third quarter alone, excluding businesses under strategic review and divested assets such as its former online program management services.

Higher Education, a key area for the company, returned to growth in the third quarter, with a 4% increase in sales.

Pearson attributes this growth to gains in adoption rates, enhanced customer engagement, and the successful rollout of AI study tools, which are helping students interact with content more effectively.

> “We are on track to meet full-year expectations,” said Pearson’s chief executive, Omar Abbosh. Despite earlier challenges, the division's recent performance positions it well for continued growth.

In addition, Pearson's enterprise division secured a significant multi-year agreement with ServiceNow (NYSE:NOW) and expanded its collaboration with learning platform Degreed.

These partnerships reflect Pearson's commitment to workforce skills development, an area that saw a 6% sales increase in the reporting period.

The company's financial position remains solid, bolstered by a recently completed £500 million share buyback program and a £350 million bond issuance.

Additionally, a legal victory related to state aid regulations means Pearson could recoup £105 million in tax payments, further strengthening its financial outlook.

Despite challenges in virtual learning earlier in the year—mainly due to the wind-down of a major contract—the segment showed renewed momentum in the third quarter, with a 4% rise in enrollments.

Similarly, English Language Learning reported a 7% growth over the nine-month period, driven by robust demand in institutional markets.