Pearson Stock Price, News & Analysis

Pearson reported solid H1 2024 financial performance, with underlying Group sales growth of 2% excluding OPM and Strategic Review businesses. Adjusted operating profit grew 4% to £250m on an underlying basis. Free cash flow improved significantly to £27m, up £77m year-over-year. The company remains on track to meet FY2024 expectations and reiterates guidance through 2025.

Key highlights include:

• Assessment & Qualifications sales grew 2%
• Higher Education sales declined 2%, in line with phasing guidance
• English Language Learning sales increased 11%
• Workforce Skills sales grew 6%

Beyond 2025, Pearson expects to deliver mid-single digit underlying sales CAGR and sustained margin improvement averaging 40 basis points annually. The company sees growth opportunities in early careers and enterprise skilling, driven by demographic shifts and AI advancements.

Pearson (FTSE: PSON.L) has appointed Ginny Cartwright Ziegler as its new Chief Marketing Officer, effective July 29, 2024. Ziegler, with over 30 years of marketing leadership experience, will report to CEO Omar Abbosh and lead the company's marketing, brand, and communications efforts. She succeeds Lynne Frank, who is stepping down from her dual role.

Ziegler joins Pearson from Accenture, where she was CMO for North America, driving double-digit growth over four years. Her focus at Pearson will be on innovating marketing strategies, incorporating AI and advanced technologies into customer journeys, and advancing Pearson's brand position. The appointment aligns with Pearson's increased focus on AI and enterprise learning efforts.

Pearson (FTSE: PSON.L) has been awarded a four-year contract by the UK Cabinet Office to deliver a new online learning experience platform for central government employees. The platform will provide a unified access point for all government learning resources, allowing users to create profiles, track completed learning, and receive personalized training recommendations. It aims to generate comprehensive data on skills availability across the government, supporting strategic workforce planning.

Out of 68 interested suppliers, Pearson was selected after a rigorous procurement process. The platform, developed in collaboration with Pearson's ventures company HowNow, will enable employees to build 'Skills Passports' and is set to be implemented across government over the next two years.

Pearson (PSO) has unveiled a new generative AI-powered tool for instructors, set to launch in August 2024 within its MyLab and Mastering platforms. This tool aims to help educators efficiently create personalized assignments for students, addressing the gap in AI understanding among faculty. Recent surveys indicate that many instructors lack confidence in incorporating AI into their teaching, while students are increasingly using AI for studying.

The AI tool is expected to save US educators nearly 3 million hours a week by 2026, allowing more time for direct student interaction. It will be available for the Fall 2024 semester in 25 business, math, science, and nursing titles in the US. Pearson is also expanding its student-focused AI study tools across 50 titles, reflecting its commitment to responsible AI application in education.

Pearson has appointed Dave Treat as its new Chief Technology Officer (CTO), effective immediately. Dave will report directly to CEO Omar Abbosh and will collaborate closely with the Chief Product and Chief Information Officers to drive technological innovation and architecture at Pearson.

Dave joins Pearson with 27 years of expertise in technology and strategic business transformation, having held senior roles at Accenture, Deloitte, and UBS Investment Bank. At Accenture, he led the Innovation Incubation Group and other key technology initiatives.

CEO Omar Abbosh highlighted Dave's expertise in AI and innovation, viewing his appointment as critical for Pearson's future technology efforts. Dave's background in education and his extensive experience in emerging technologies such as Generative AI, Blockchain, and Quantum Computing position him well to advance Pearson's mission in the learning space.

Dave will be based in Connecticut, USA.

According to Pearson's 2024 School Report, at least 1.5 million children in England struggle to engage in learning weekly. The report, based on feedback from over 12,000 teachers, students, and education experts, reveals a significant disengagement issue, especially in secondary schools. While 68% of students enjoy school, 73% struggle with lessons. Key challenges include lack of understanding, not feeling clever enough, and health issues. Teachers suggest solutions like hiring additional staff, integrating digital tools, and making curriculum content relevant to students' lives. These efforts are important in addressing the growing concern of pupil disengagement.

Pearson reports significant growth in the adoption of its generative AI study tools, integrated into Mastering and Pearson+ eTextbooks. Over 70,000 students from 1,000 institutions have interacted with the tools more than 2 million times. These AI tools help students understand complex topics, leading to increased engagement and efficiency in their study sessions.

According to a survey by Pearson and Morning Consult, 51% of students claimed AI tools improved their grades, and 56% found them made studying more efficient. Pearson plans to expand these tools to 50 MyLab and Mastering titles, aiming to reach millions of students by Fall 2024.

Pearson's Connections Academy has partnered with SEMI Foundation to provide high school students, families, and educators with unique experiences in the semiconductor industry. This collaboration aims to offer internships, apprenticeships, scholarships, and digital badging. The semiconductor industry, projected to grow by 80% to 460,000 workers by 2030, is a critical sector supported by a $350 billion investment over 20 years from the CHIPS and Science Act. Pearson aims to address the talent gap by engaging early talent through this partnership. Connections Academy's college and career readiness programs launched in spring 2023 will also benefit from this initiative.

PDRI by Pearson (FTSE: PSON.L) has been awarded the Top Workplaces 2024 honor by the Washington Post, based on employee feedback collected through a survey by Energage This survey measures themes such as feeling respected, supported, and empowered. PDRI's commitment to industrial and organizational psychology, which it applies to both clients and its own workforce, has been validated by this award. CEO Elaine Pulakos highlighted the importance of a great team and an environment that fosters growth and collaboration as keys to their success.