Pearson education sales lifted by artificial intelligence drive
- Pearson revealed its underlying revenues increased by 4% in the third quarter
- CEO Omar Abbosh: ‘We are accelerating our AI capabilities across the business’
Pearson has credited its recent investment in artificial intelligence with helping to drive sales growth over the most recent quarter.
The educational publisher saw underlying revenues rise 4 per cent in the three months ending September, taking its total growth over the first nine months of 2024 to 2 per cent.
The FTSE 100 group saw a double-digit billings increase in higher education products in the opening three quarters of the year, with its AI study tools recording 5 million student interactions.
Good results: The educational publisher revealed its underlying revenues rose by 4 per cent in the three months ending September
While sales at Pearson’s higher education business have flatlined so far this year, they returned to growth in the third quarter with a 4 per cent uptick.
The company’s virtual learning arm also recorded a 4 per cent boost in the July to September period, supported by rising enrolment numbers at its schools.
Pearson said AI applications had been integrated into its virtual schools to provide struggling students with ‘step-by-step help to walk them through tough material’.
Omar Abbosh, chief executive of Pearson, said: ‘We are accelerating our AI capabilities across the business and starting to see the commercial benefit.’
At the start of October, the firm launched a Generative AI Foundations certification for physical test centres and its online testing platform, OnVUE.
It introduced the qualification to give people the skills to work with generative AI technologies, which are increasingly desired among businesses.
Alongside this, Pearson said it is ‘infusing AI’ into its English language learning arm by creating Teaching Pal to offer ‘customised lesson content and activities.’
Mark Crouch, market analyst at eToro, said Pearson ‘has broken free from what proved to be an inefficient and outdated business model.’
He added: ‘The next test for Pearson will be maintaining growth…If Pearson’s A grade run is to continue, the company will need to show the same incisiveness that the market has come to expect.’
Following the latest trading period, Pearson said it was on track to achieve annual forecasts, with adjusted operating profits set to come in around £598million.
It also anticipates earnings of 61.6 pence per share and organic revenues to be 2.7 per cent higher at constant exchange rates.
Pearson shares were 3.5 per cent up at £11.09 on late Friday afternoon, making them one of the FTSE 100 Index’s top performers.
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