The new chief executive of British education and media group Pearson said the Financial Times (FT) is not for sale, refuting repeated media speculation about the newspaper's future at the company.
Speculation that Pearson may sell the FT has increased, in part because Fallon has few ties to the newspaper industry. But he dismissed the rumours, calling the FT a valuable part of Pearson.
"The FT is a valued and valuable part of Pearson. I have said the business is not for sale, nor have we initiated, conducted, encouraged in any shape or form, any sort of process whatsoever, nor have I had any conversations with anybody about the sale of the FT," Chief Executive John Fallon said when asked about the newspaper on a call with reporters on Monday.
Pearson warned earnings will stall this year as it launched a £150-million ($228.99 million) overhaul to counter a tough advertising market and tighter educational budgets.
Fallon, who took over from long-serving Majorie Scardino in January, said the plan will help deliver faster growth from 2015. Shares in the owner of the world's biggest education technology business, fell 5.5 per cent to 1,148 pence, hitting their lowest level since June last year.
The group issued a rare downgrade to forecasts in January as sluggish advertising and weaker educational funding in developed markets squeezed its profits.
The weakening conditions come at a time of widespread change for the FTSE 100 company. As well as welcoming a new boss, it is merging its Penguin book publisher with Random House, owned by Germany's Bertelsmann.
"The key feature of Pearson's 2012 results was the very weak guidance for 2013 and implied for 2014, which should lead to significant consensus downgrades," Liberum analyst Ian Whittaker said.
Pearson said full-year adjusted earnings per share fell 3 per cent to 84.2 pence, in line with its January guidance, on revenue up 4 per cent to £6.1 billion.
Pearson said it has around £500 million for acquisitions. "With no need for cash, we believe a sale of the FT is unlikely," Liberum's Whittaker said.
Pearson said the reorganisation, which will cost £150 million this year, but also deliver £50 million of cost savings in 2013 and £100 million annually from 2014, will speed up the move to selling products and services digitally, instead of in print.
The emerging markets business, which aims to capture a rise in spending on education by a burgeoning and aspirational middle class, the digital business and the Penguin Random House deal will result in faster growth and will help improve margins from 2015, Pearson said.
The cost savings will be reinvested in the business and spent on further restructuring, Pearson said.
The company's entire educational supply chain will be affected by the restructuring, said Fallon, from product development, production sales, marketing, warehousing, distribution and customer services.
Some closures and job losses will result from the restructuring, Fallon added, declining to be drawn on how many.
Speculation that Pearson may sell the FT has increased, in part because Fallon has few ties to the newspaper industry. But he dismissed the rumours, calling the FT a valuable part of Pearson.
"The FT is a valued and valuable part of Pearson. I have said the business is not for sale, nor have we initiated, conducted, encouraged in any shape or form, any sort of process whatsoever, nor have I had any conversations with anybody about the sale of the FT," Chief Executive John Fallon said when asked about the newspaper on a call with reporters on Monday.
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The FT also gives it a powerful brand in emerging markets, helping it sell its education products there, Fallon said.
Pearson warned earnings will stall this year as it launched a £150-million ($228.99 million) overhaul to counter a tough advertising market and tighter educational budgets.
Fallon, who took over from long-serving Majorie Scardino in January, said the plan will help deliver faster growth from 2015. Shares in the owner of the world's biggest education technology business, fell 5.5 per cent to 1,148 pence, hitting their lowest level since June last year.
The group issued a rare downgrade to forecasts in January as sluggish advertising and weaker educational funding in developed markets squeezed its profits.
The weakening conditions come at a time of widespread change for the FTSE 100 company. As well as welcoming a new boss, it is merging its Penguin book publisher with Random House, owned by Germany's Bertelsmann.
"The key feature of Pearson's 2012 results was the very weak guidance for 2013 and implied for 2014, which should lead to significant consensus downgrades," Liberum analyst Ian Whittaker said.
Pearson said full-year adjusted earnings per share fell 3 per cent to 84.2 pence, in line with its January guidance, on revenue up 4 per cent to £6.1 billion.
Pearson said it has around £500 million for acquisitions. "With no need for cash, we believe a sale of the FT is unlikely," Liberum's Whittaker said.
Pearson said the reorganisation, which will cost £150 million this year, but also deliver £50 million of cost savings in 2013 and £100 million annually from 2014, will speed up the move to selling products and services digitally, instead of in print.
The emerging markets business, which aims to capture a rise in spending on education by a burgeoning and aspirational middle class, the digital business and the Penguin Random House deal will result in faster growth and will help improve margins from 2015, Pearson said.
The cost savings will be reinvested in the business and spent on further restructuring, Pearson said.
The company's entire educational supply chain will be affected by the restructuring, said Fallon, from product development, production sales, marketing, warehousing, distribution and customer services.
Some closures and job losses will result from the restructuring, Fallon added, declining to be drawn on how many.