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AI helps Pearson grow sales 5% in back-to-school quarter
Global Banking & Finance Review®
Company
By Paul Sandle
LONDON (Reuters) -British education company Pearson reported accelerating growth in its third quarter, boosted by AI and a stronger performance in assessment and qualifications, putting it on track to meet market expectations for the year.
It said all of its divisions were up in the quarter, including a return to growth in higher education, where AI study tools helped drive sales up 4%.
Chief Executive Omar Abbosh said Pearson was accelerating the deployment of AI across its business and it was starting to see a commercial benefit.
There were over 5 million student interactions with the tools in the nine-month period to September, he said on Tuesday, and the technology had been extended to more than 90 titles for the recent back-to-school period.
He said higher education products with AI study tools were seeing double-digit growth in billings.
Abbosh has also identified workforce skills as a major opportunity for Pearson, and it recently signed a deal with ServiceNow, a U.S. AI-driven platform that helps companies manage workflows.
“I see that as a very nice indicator of the kinds of deals that you’ll see us do more of in the future,” he told Reuters.
Shares in Pearson, up 11% year to date, were trading 3% higher in morning deals, as analysts at Citi said the company had delivered a “solid” update.
They noted that Pearson had achieved growth across all divisions for the first time for more than five years, excluding the unwinding of COVID effects.
Analysts currently expect Pearson to report adjusted operating profit of 598 million pounds ($775 million) for the full year, according to a company-compiled consensus.
($1 = 0.7711 pounds)
(Reporting by Paul Sandle; Editing by Kate Holton, Kirsten Donovan)
Artificial Intelligence (AI) refers to the simulation of human intelligence in machines programmed to think and learn. In finance, AI is used for data analysis, risk assessment, and enhancing customer experiences.
Higher education products are educational materials and tools designed for college and university students. These can include textbooks, online courses, and study aids that facilitate learning and academic success.
Adjusted operating profit is a measure of a company's profitability that excludes certain one-time expenses or revenues. It provides a clearer view of ongoing operational performance.
A commercial benefit refers to the financial advantage gained from a business activity or investment. It often includes increased sales, cost savings, or improved efficiency.
Workforce skills development involves training and education programs aimed at enhancing the skills and competencies of employees. This is crucial for improving productivity and adapting to changing job market demands.
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