Pearson profits jump 10%, unveils £350m buyback

(Sharecast News) - Education publisher Pearson on Friday said annual profit rose 10% driven by growth in its English language learning operations and unveiled a £350m share buyback as it reiterated guidance for 2025.

Full-year adjusted operating profit came in at £600m, at the upper end of guidance, while the final dividend was lifted to 24p a share.

Chief executive Omar Abbosh said an accelerated rollout of artificial intelligence across its products remained a priority.

"We also continue to focus on expanding our presence in the highly attractive Enterprise skills market at a time where Pearson can play an important role in helping bridge the critical skills gap that impacts the economy, workforce and individuals," he said.

AJ Bell investment director said Pearson had "achieved a leading role in online learning".

"Profit for the year came in at the top end of expectations with strong growth in English language learning. Alongside the numbers, the company has announced an expansion of its existing tie-up with Amazon's AWS cloud computing operation. AWS will support Pearson to further integrate AI into its offering."

"Pearson has already brought in innovations like an AI tutor which helps children with their homework, and an assessment tool for teachers to help them with lesson plans. While there will be excitement about the potential, investors will increasingly want to see evidence of how AI is delivering returns for the business too."

Reporting by Frank Prenesti for Sharecast.com