(Bloomberg) -- Pearson Plc’s new chief executive unveiled a strategy that promises to “unlock tens of millions of savings” over time as it adapts to a market being reshaped by artificial intelligence.
While restructuring costs will rise in the meantime, they’ll help the company to invest in growth opportunities further down the line, the UK education specialist said in a half-year earnings report on Monday.
“Significant demographic shifts and rapid advances in AI will be important drivers of growth in education and work over the coming years,” said Omar Abbosh, at the helm since January. “We are implementing plans across all of our businesses that will see us deliver better products and services with greater efficiency.”
The company reported a 6.7% drop in sales to £1.75 billion ($2.24 billion) in the six months through June 30, missing analyst estimates, while adjusted operating profit was flat at £250 million.
The forecast for 2024 remains in line with the market’s expectations, the company said, adding that the strategy shift will add 40 basis points a year to its margin after 2025, it said.
Pearson shares declined as much as 5.1% in London, the most intraday since September.
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