Earnings: FT Strong Despite Economy, Revenue Up 11 Percent
This story was written by Patrick Smith.
In times of financial crisis, one of the few things to benefit is the financial media. And that may go some way to explain why Financial Times publisher Pearson (NYSE: PSO) today reported that FT Group's revenues have risen by 11 percent in the last nine months while at FT Publishing revenues are up 14 percent with advertising revenue 1 percent ahead of 2007 on a like-for-like basis. Pearson even said it expects FT Publishing to increase profits "even if there is no growth in advertising revenues".
-- At the FT's interactive data division sales are up 8 per cent. This is a sign of the B2B data mentality mentioned of the business recently by FT managing editor Rob Grimshaw. The company is making more of its share price data and company information and using it to increase online subscripions. Grimshaw also defended the FT's part-free online business model and said that people will pay for quality contenta sentiment these figures appear to confirm.
In a nine-month trading update today, FT owner and education publisher said its overall operating profits were up 11 percent with revenue up 8 percent. The Canadian-based publisher, which also owns the Penguin books imprint, said its EPS was "toward the top end of market expectation" if the recent strength of the dollar against the pound continued. Analysts have predicted between 46 pence and 52 pence per share by the end of year, compared with 46.7 pence last year. As FT.com reports, CEO Marjorie Scardino said the company remained "cautious" about the global outlook but said it was in good shape to get through the turmoil.
By Patrick Smith