LONDON (Brand Republic) - Full-year profits at education and media group Pearson plunged 17% in 2000, after a year of significant investment in online operations and a strategic restructuring.
Pre-tax profits for 2000 were £333m, which included investment of £196m in internet operations, compared with £402m in 1999. The investment in FT.com and the Learning Network is said to be an attempt to hasten their move into profit by 2002 and 2003 respectively.
Shares in Pearson dropped slightly on the news this morning, down 21p or 1.35% at 1,540p.
The company鈥檚 reorganisation saw it sell its stake in investment bank Lazard and acquire educational publisher Dorling Kindersley.
It then merged its TV business with CLT-Ufa, leaving it with a 22% stake in RTL, Europe鈥檚 largest broadcaster, which is controlled by Bertelsmann.
The company also acquired US testing and assessment business National Computer Systems to add to its education portfolio.
Pearson used its results to announce the launch of FT Mobile, a joint venture with Carphone Warehouse, the mobile phone retailer. The FT Mobile service will 鈥減rovide premium business and financial content over a virtual wireless network鈥.
FT Mobile will also sell handsets and offer after-sales services to mobile users and will run on the BT Cellnet network.