Pearson reports 9% revenue drop; PRH has ‘solid’ 2018
UK educational publisher Pearson, which owns a 25% stake in Penguin Random House (PRH), has reported company-wide results showing its 2018 revenue fell by 9% to £4.13 billion (A$7.61bn), reports Publishers Weekly.
The 9% drop was attributed in part to divestitures Pearson made, which reduced revenue by £216 million (A$398m). The company also reported £134 million (A$247m) in negative foreign exchange. Pearson’s adjusted operating profit in 2018 was £546 million (A$1.006bn), down from £576 million (A$1.06bn) in 2017.
Divestitures and the negative impact of foreign exchange were partly offset by the company’s efforts to restructure, which helped cut costs by £130 million (A$239m).
In a short report on PRH, Pearson said that the publisher had a ‘solid’ 2018, bolstered by increased audiobook sales and stable print sales.
PRH’s bestselling titles in 2018 included Michelle Obama’s Becoming (Viking), James Patterson and Bill Clinton’s The President is Missing (Century), and new books by Jamie Oliver, Dr Seuss, John Grisham and Lee Child.
PRH contributed £68 million (A$125m) to Pearson’s profits in 2018, and Pearson said it expects a ‘normalised’ publishing performance from PRH in 2019, and an after-tax contribution of £60 to £65 million (A$110-119m) to its adjusted operating profit.
PRH parent company Bertelsmann will report more detailed results in March.
Category: International news