In an echo of Pearson’s past profit warnings, the world’s biggest education company said on Thursday that while 75% of its sales continued to grow, U.S. higher education courseware revenue was set to fall as much as 12% in 2019.
This compared with a forecast 5% drop from the British education company, which has cut 16,000 jobs and restructured over six years to sell textbooks and courseware online, after a rapid move to digital sales sparked repeated profit warnings.
“We thought that textbook sales would be down 10% this year, it looks like now they’re going to be down 20%,” Chief Executive John Fallon told reporters. “That is painful for this year’s guidance but what it means is we’re just getting to the future state of this business more quickly.”
Read the Complete Article