REG - Pearson PLC - Contract

PearsonAnnouncement

19/04/2022 07:00

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RNS Number : 5041I  Pearson PLC  19 April 2022

 19 April 2022

 

 Pearson plc

 ("Pearson")

 Pearson's OPM contract with ASU to end in 2023 - no change to Group guidance
 LONDON, 19 APRIL 2022: Pearson, the world's leading learning company, today
 announces that its Online Program Management (OPM) partnership with Arizona
 State University (ASU) will end in June 2023 and reiterates existing Group
 financial guidance.

 Over the last 10 years, the ground-breaking collaboration between Pearson and
 ASU has helped the university enhance and expand its online learning services
 and resources. Together, ASU and Pearson share a deep commitment to making an
 impact on the lives of learners and this highly successful partnership has
 helped tens of thousands of students to reach their potential by obtaining a
 college degree.

 The profit impact of the contract termination will be modest in 2022 and 2023
 and will be offset thereafter through eliminating related costs and
 re-directing investment across our strategic growth opportunities. There is no
 change to the Group financial guidance for 2022 that we laid out at our
 preliminary results in February this year and our medium-term Group level
 guidance is also unchanged. We continue to expect to achieve mid-single digit
 Group revenue CAGR from 2022 to 2025 and for Group margins to remain
 relatively stable in the near term, as we invest to drive growth, improving by
 2025 to mid-teens.

 This announcement contains inside information.

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 Contacts
 Investor Relations      Jo Russell          +44 (0) 7785 451 266

                         James Caddy         +44 (0) 7825 948 218
 Media                   Tom Steiner         +44 (0) 7787 415 891

                         Gemma Terry         +44 (0) 7841 363 216
 Teneo                   Charles Armitstead  +44 (0) 7703 330 269

 Forward looking statements

 Except for the historical information contained herein, the matters discussed
 in this statement include forward-looking statements. In particular, all
 statements that express forecasts, expectations and projections with respect
 to future matters, including trends in results of operations, margins, growth
 rates, overall market trends, the impact of interest or exchange rates, the
 availability of financing, anticipated costs savings and synergies and the
 execution of Pearson's strategy, are forward-looking statements. By their
 nature, forward-looking statements involve risks and uncertainties because
 they relate to events and depend on circumstances that will occur in future.
 They are based on numerous assumptions regarding Pearson's present and future
 business strategies and the environment in which it will operate in the
 future.

 There are a number of factors which could cause actual results and
 developments to differ materially from those expressed or implied by these
 forward-looking statements, including a number of factors outside Pearson's
 control. These include international, national and local conditions, as well
 as competition. They also include other risks detailed from time to time in
 Pearson's publicly-filed documents and you are advised to read, in particular,
 the risk factors set out in Pearson's latest annual report and accounts, which
 can be found on its website (plc.pearson.com). Any forward-looking statements
 speak only as of the date they are made, and Pearson gives no undertaking to
 update forward-looking statements to reflect any changes in its expectations
 with regard thereto or any changes to events, conditions or circumstances on
 which any such statement is based. Readers are cautioned not to place undue
 reliance on such forward-looking statements.

 

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