Pearson turns a new page with the success of e-books

Surging demand for e-books is helping drive a better-than-expected performance at Penguin and Financial Times publisher Pearson, the group said.
By The Newsroom
Published 26th Oct 2010, 11:48 BST
Updated 26th Oct 2010, 11:49 BST

Pearson upped its full-year earnings guidance for the second time in three months after underlying sales rose 7 per cent across the group in the first nine months of the year.

Its Penguin book publishing arm saw sales rise 5 per cent thanks to a three-fold hike in sales of e-books, with the division now offering 16,500 digital titles.

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The FT newspaper operation also had another good quarter as the advertising recovery continued apace, driving overall nine-month sales up 11 per cent, according to Pearson.

Pearson cautioned the fourth quarter was a crucial selling season for its education and consumer publishing divisions, which also face tough comparatives towards the end of the year.

But the group confirmed it was "trading ahead of previous guidance" and raised expectations for its earnings per share measure.

Pearson also moved guidance higher in July after a sharp rise in first half operating profits, which soared to 178m from 84m a year earlier.

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FT Group hailed a return to growth in advertising revenues during the first quarter and the bounce back has been sustained in the year to date.

Pearson added that the FT was also being boosted by "strong demand" for digital content. Digital subscriptions have risen by 50 per cent to more than 180,000.

The rise in popularity for digital books is likewise offsetting an otherwise tough market for Penguin.

Pearson said the division was "continuing to lead the industry in innovation in digital publishing".

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Comic Stephen Fry's best-selling memoirs, The Fry Chronicles, were published in five formats as part of this effort to tap into demand for digital versions – also marking a first in the industry, said Pearson.

It is hoping a line-up including books by celebrity chef Jamie Oliver and comedian Michael McIntyre will position the consumer publishing arm well for the crucial Christmas season.

Pearson's 2010 performance has also been given a fillip by rising sales in its burgeoning education offering, covering publishing and training.

Related topics:Stephen Fry