FT parent posts higher profits due to better ad sales
Pearson Plc, the London-based parent of The Financial Times newspaper, reported a double-digit increase in net income in the third quarter and predicted record profits for the year, partly due to higher ad sales at its flagship newspaper.
London Times reporter Miles Costello wrote, “The FT Group, which also houses newsletters and other specialist business publications, appears to have shrugged off much of the gloom gripping advertising markets, with ad revenues rising by 10 per cent over the first nine months of the year.
“‘We still have a lot of trading ahead of us, but we are on track to produce Pearson’s highest profits ever this year,’ [CEO Marjorie Scardino] said. ‘That will be the result of strong performances from all parts of Pearson, together with our company-wide efforts to use our scale and technology to improve margins and create valuable new services for our customers.’
“Last year Pearson made pre-tax profits of Â£466 million, on record profits at its education division and a continuing turnaround at the FT. Consensus forecast profits for this year are about Â£490 million.
“Sales at the FT Group, where the FT has moved successfully to combine its online and newspaper output, rose 5 per cent over the nine months. Pearson said: ‘We continue to expect the FT Group to make further significant profit improvement in 2006 compared with 2005.’”
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