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Pearson PLC on Tuesday kept its financial guidance intact, despite saying a significant contract with Arizona State University will end next year.
The London-based education publisher said its Online Program Management partnership with ASU will end in June 2023. The UK company gave no reason for the termination of the 10-year collaboration, which saw Pearson help the university expand its online learning services.
‘The profit impact of the contract termination will be modest in 2022 and 2023 and will be offset thereafter through eliminating related costs and re-directing investment across our strategic growth opportunities,’ the company said.
Pearson stressed its financial guidance for the current financial year remains unchanged, as does its medium-term outlook.
‘We continue to expect to achieve mid-single digit group revenue [compound annual growth rate] from 2022 to 2025 and for group margins to remain relatively stable in the near term, as we invest to drive growth, improving by 2025 to mid-teens,’ the company said.
In February, the company said it expected further revenue growth, with adjusted operating profit for the current financial year tipped to be in line with current market expectations.
Pearson shares were trading 1.3% lower at 762.20 pence each in London on Tuesday morning.
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