Pearson raises 2010 profit forecast

Pearson, owner of the Financial Times and book publisher Penguin, today raised its 2010 profit forecast for the second time in three months, reporting growth across its businesses. The publishing group, which makes most of its revenue from educational publishing, expects to report continuing operating profits for 2010 of about £850m, a headline increase of around 20%. Pearson now expects adjusted earnings per share of 76p, an increase of about 16% on 2009. Shares in the group jumped 5.6% at the news, an eight-month high, to £10.56 at 9.30am. FT Group, which publishes the Financial Times, will report "substantial profit growth", bolstered by an improvement in advertising markets and "resilient" subscription-based revenues for its flagship title. Boosted by strong Christmas sales, Penguin is expected to report record results despite "tough conditions" in the physical book market. Penguin remains a standout performer for the group, with Jamie Oliver's bestseller and a range of ebook titles contributing to a strong Christmas season. Sales of Pearson's ebook reported a 300% year-on-year increase in October last year. Pearson's education arm, which includes school and vocational publishing operations across the world, remained "steady" in the final quarter of 2010, with growth in its professional testing division and digital publishing offsetting a slide in sales of physical books. "For the third successive year, our growth is vigorous even though market conditions have been anaemic," said the Pearson chief executive, Marjorie Scardino. "We are on the right road and set out on 2011 with confidence that we will have another good year." Yesterday the group announced it had taken a $127m (£79m) controlling stake in education firm TutorVista, which will increase its presence in India. The group's north American education operation, which generates approximately 60% of its sales, is expected to report good sales growth and a "significant growth" in digital learning, the company said. • To contact the MediaGuardian news desk email [email protected] or phone 020 3353 3857. For all other inquiries please call the main Guardian switchboard on 020 3353 2000. • If you are writing a comment for publication, please mark clearly "for publication".