Pearson has just published its end-of-year results, and in a tough economic climate they're impressively strong. The company, which counts the FT Group, Penguin, Pearson Education and a 50% stake in the Economist Group among its many holdings, has reported a 12% increase in its adjusted operating profit, with a 27% growth in profits for the FT Group.
Part of this success is due to the FT Group reducing its dependence on volatile advertising markets, and relying more heavily on digital, subscription and content revenues.
Overall, the FT Group is now making more money from its content, and less from advertising. In 2007, the group drew 41% of its total revenues from content, 59% from ads. Now the balance is 58% from content, 42% from ads.
What's more, according to the report, money from digital and services now account for 47% of the FT Group's revenues, compared to just 25% in 2007.