Full Year 2024 Pearson PLC Earnings Call Transcript
Key Points
- Pearson PLC (PSO) delivered a financial performance in line with market expectations, achieving a 3% sales growth and a 10% profit increase.
- The company successfully renewed key contracts in US student assessments and scaled its qualifications business internationally.
- Pearson PLC (PSO) is building momentum in the enterprise business, evidenced by a new partnership with AWS.
- The company is scaling the application of AI across its products and services, leading to commercial benefits.
- Pearson VUE achieved a customer retention rate of 99%, showcasing strong customer loyalty and satisfaction.
- The virtual schools segment experienced a 1% decline due to known school losses, although enrollments were up 4% on a same school basis.
- Higher education margins remained flat due to inflation and one-off investment and restructuring costs.
- The English language learning segment faces potential headwinds from immigration market fluctuations due to upcoming elections.
- Despite enrollment growth in US higher education, the number of paid users to Pearson did not increase.
- The company faces challenges in maintaining growth rates in virtual schools and improving margins in higher education.
Good morning, everyone, and welcome to Pearson's 2024 full year results. (Operator Instructions)
And with that, I'll hand over to Omar.
Yeah. Thank you, Alex. Good morning, and welcome to all of you. Thank you for joining us today. As well as hearing from Sally and me, we're also joined by our colleagues, Art, Tom, Vishaal, Tony, and Sharon for Q&A. Many of you will recognize Sharon from the assessments and qualifications Investor seminar that we held back in November 2023. Let me formally introduce it to all of you.
Sharon has held many leadership roles over her successful Pearson career and is currently MD of our US Student Assessments in UK and international qualifications businesses. She has a track record of strong results delivery. I'm pleased to announce that Sharon will become our new President of English language learning effective next month.
This means that Gio Giovannelli has decided to leave Pearson. Gio has contributed so much to Pearson over
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