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Sales up at 'efficient' Penguin

22.10.07

Penguin's sales were up 2% in the first nine months of 2007, according to a trading statement put out this morning by parent Pearson. Pearson also said that Penguin was expected to improve its margins further in the full year, as its "publishing investment and efficiency programmes bear fruit".

Overall, Pearson's underlying sales in the first nine months of the year were up 6%, with operating profits 20% higher than in the same period last year. Headline sales, including the impact of acquisitions and currency movements, were up 4% with operating profits up 17%.

Pearson said that at this stage of the year-with the upcoming fourth quarter an "important selling season in higher education and consumer publishing"--all its businesses were trading in line with, or ahead of, its previous guidance.

Pearson Education's underlying sales were up 7%. Its school business saw sales up 7%, and it expects full-year sales growth in the school sector to be around the top end of the 4-6% range along with further margin improvement. Its higher education business saw sales up 5%, while professional education sales were up 12%.

Pearson put the Penguin performance down to strong performances from authors including Alan Greenspan (The Age of Turbulence), Khaled Hosseini (A Thousand Splendid Suns), Jamie Oliver (Jamie at Home) and Elizabeth Gilbert (Eat, Pray, Love).

Chief executive Marjorie Scardino said: "We still have a lot of trading ahead of us, but every part of the company is doing well. We're benefiting from rapid take-up of our learning technologies; sustained increases in our audience and advertising at the FT; and bestselling publishing combined with operating efficiency at Penguin. This increases our confidence that 2007 will be another year of record profits for Pearson."

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