LONDON (dpa-AFX) - Pearson plc. (PSO, PSON.L), in its first-quarter trading update, said that trading was in line with revised expectations, revenue for the quarter declined by 5% from last year hurt by COVID-19.
Global Assessment revenue declined 3% due to the closure of testing centres in its Professional Certification business, and a decline in Clinical Assessment attributable to school closures.
International revenue declined 10% due to test centre and school closures across many of its International markets and also the phasing of courseware sales in the UK.
North American Courseware revenue declined 10% due to the expected continuation of trends seen in US Higher Education in 2019, exacerbated by the closure of campus-based bookstores and a weaker performance in courseware in Canada as a result of school closures.
Global Online Learning revenue grew 6% with a strong performance in Virtual Schools driven by good enrolment growth and planned new school openings as well as growth in Online Program Management.
The company expects disruption in its businesses which rely on physical locations such as its Global Assessment and International divisions where the closure of testing centres has impacted Professional Certification and the Pearson Test of English.
The company has seen a significant uplift in the use of its digital products and services, and rapidly growing interest in its Global Online Learning business.
The company has chosen not to furlough staff and is instead re-deploying people as much as it possibly can around the business to support the areas of greatest need and opportunity.
The Chief Executive and Chief Financial Officer are taking a temporary voluntary reduction in their remuneration of 25% and 20% respectively, and the Chair and Non-Executive Directors are also taking a voluntary reduction in fees of 50% and 25% respectively. This will be donated to charities engaged in COVID-19 related activities.
The Board proposed a final dividend for 2019 of 13.5 pence, an increase of 4%, which results in an overall dividend of 19.5 pence. This will be payable on the 7th May 2020.
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