Pearson Trading Update: Delivers 3% Underlying Sales Growth In 2024, Expects £595-600M Operating Profit

Delivered on financial1 and strategic priorities for 2024. Entering 2025 with continued confidence. New strategic partnership with Microsoft progressing our Enterprise focus and technology transformation.

Highlights

• Underlying Group sales growth2 of 3% for the full year, excluding OPM3 and the Strategic Review4 businesses.
• Group adjusted operating profit of £595-600m at £:$ of 1.28 for the full year, up c.10% on an underlying basis compared to 2023, resulting in a margin of c.16.8% (2023: 15.6%).
• Free cash flow conversion in excess of 100%5, ahead of guidance.
• Successfully delivered our 2024 strategic priorities with progress in Enterprise and scaling AI across our products and services including the recent launch of an AI powered Digital Language Tutor (link here).
• New multi-year strategic Enterprise AI partnership with Microsoft (link here):
  • Extending our commercial relationship with Pearson VUE;
  • Future collaboration on innovation and joint go-to-market activities, including in AI upskilling; and
  • Opportunity to enhance our AI and technology capabilities across the business.

Omar Abbosh, Pearson's Chief Executive, said:

"I am pleased with the progress Pearson has made in 2024, successfully executing against our financial and strategic priorities. I'm particularly encouraged to see the growing commercial momentum of our AI enhanced offerings and the strategic Enterprise partnerships that we have established, such as the latest with Microsoft. These reflect the strength of our proposition and the opportunities that lie ahead.

The Group is well positioned, with continued confidence, as we look to build on our strategic and operational progress and deliver long-term future value for our shareholders."

Underlying sales growth2 of 3% for 2024, excluding OPM3 and Strategic Review4 businesses; 2% in aggregate