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AI helps Pearson grow sales 5% in back-to-school quarter
Published by Uma Rajagopal
Posted on October 29, 2024
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Published by Uma Rajagopal
Posted on October 29, 2024
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)