Pearson profits leap 23% as ad sales improve at FT

LONDON - Pearson has reported a rise in pre-tax profits of 23% to £422m for 2005, as advertising revenue improved by 9% at flagship newspaper, the Financial Times.

The company, which owns Penguin books and Pearson Education, reported a rise in turnover of 9% to £4.1bn.

The FT Group saw profits rise by 37% to £101m, and Pearson said that the Financial Times was showing good momentum, with advertising revenues up 12% in the year to date.

This included a rise of ad revenues at the FT of 9%, with sustained growth in luxury goods and worldwide display advertising.

FT.com saw a 27% rise in ad revenues as the newspaper's biggest advertisers shift to integrated print and online campaigns.

Even though the FT's performance has improved, it is unlikely to lessen calls from Pearson shareholders to sell the newspaper, a move that is strongly opposed by Dame Marjorie Scardino, Pearson chief executive.

The Independent on Sunday reported this weekend that Axa Investment Management, Pearson's sixth-largest shareholder, has urged management to sell the title, adding to calls from US fund manager Franklin Templeton, which raised the issue last year. Franklin Templeton is Pearson's largest shareholder.

Elsewhere at Pearson, the education division reported record results, with profits up 22% to £348m, while Penguin profits were up 4% at £60m.

Scardino said: "Our leadership in growth markets, our innovation and our efficiencies give us real momentum and we expect our strong performance to continue in 2006 and beyond."

The company said it proposed a dividend increase of 6% to 27p, subject to approval. Shares in Pearson rose by 2% this morning to trade at 719.5p, a rise of 14p.

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