“Pearson Forecasts Years of Textbook Gloom; to Sell Penguin” & eBook Rental Price Drops, Print Textbook Rentals Announced

From Bloomberg:

“The crisis engulfing Pearson Plc deepened after the education company cut its profit forecast and predicted years of gloom in the U.S. market, forcing it to slash its dividend and put its stake in the iconic Penguin Random House book business up for sale to raise cash.
The unscheduled announcement sent the stock tumbling the most on record. Pearson projected operating profit this year as much as 19 percent below analysts’ average estimates, after missing half-year estimates in six of the last eight reports. Pearson’s partner in Penguin Random House, majority owner Bertelsmann SE, said it would consider raising its stake in the venture.”

Read the Complete Bloomberg Report
eBook and Print Rentals
From a Pearson News Release:

“We are increasing our participation in the courseware rental market, by:
a. reducing eBook rental prices by up to 50% across 2,000 titles – making digital rental the best option for price-conscious students.
b. launching our own print rental program, piloting with an initial group of 50 titles made available through Pearson’s approved rental partners, ensuring Pearson is paid more often for the usage of our courseware. If successful we will scale this program rapidly.”

Read the Complete Pearson News Release
Slides From Today’s Presentation

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