Pearson ‘pleased’ with pivot to AI but Virtual Schools slow again

Educational publisher Pearson has said it is happy with how its pivot to become a technology-driven company is going, as it reported small growth in first quarter results on Friday.

The London-listed company posted sales growth of two per cent as digital registrations increased three per cent on the same period in 2023.

Pearson has been integrating artificial intelligence (AI) into its suite of educational products as it looks to modernise. It said it is “pleased with the engagement we are seeing from both students and faculty on our AI study tools”.

Pearson is on track to add the AI features to over 40 new titles in the Autumn back-to-school sales season.

The majority of its revenue was driven by English Language Learning sales, which shot up 22 per cent in the first quarter, with inflationary pricing in Argentina having a positive impact. But this will evaporate as comparative foreign exchange rates normalise, Pearson said.

Higher Education sales were down four per cent, as expected, as did Virtual Learning sales. Pearson said it expects its Virtual Schools business sales to slow at a similar rate to 2023, following the previously announced loss of a large partner school for the 2024/25 academic year.

Omar Abbosh, Pearson’s Chief Executive, said: “The year has started well. Financial performance was in line with our expectations, thanks to strong execution across the business, and we maintain a sharp focus on delivering against the priorities that I outlined.

“The year is unfolding as we anticipated, and we continue to expect an acceleration of growth in the second half, which will see us achieve our guidance for the full year. We look forward to providing an update on our strategic progress with our half year results in July.”

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