Pearson reports 1H underlying sales growth of 2%

Reports 1H EPS 24.8p vs. 23.1p last year. Reports 1H sales GBP 1.72B vs. GBP 1.75B last year. Assessment & Qualifications sales were up 2% with strong growth in Clinical Assessments and UK & International Qualifications, partially offset by declines in Pearson (PSO) VUE and US Student Assessment. Pearson VUE decline was driven by the pause in a contract delivered in 2024 which will recommence in H2 2025, and headwinds in PDRI, which has been impacted by US federal government hiring and spend reductions which the company expects to continue in the second half. Virtual Learning sales were down 1%, as expected, due to the final portion of the impact of previously announced school losses. 2024/25 academic year enrolments increased 5% in the Spring semester on a same school basis, with favourable retention trends, underpinning confidence in returning to growth in H2. Higher Education sales were up 4%, benefiting from growth in Inclusive Access of 21% and US digital subscriptions of 3%. The company continued to see good monetisation of the Study Prep tool, formerly known as Channels, and ongoing engagement with AI-powered study tools. English Language Learning sales were down 3%, in line with expectations, with Institutional impacted by a strong comparator period in H1 2024. Pearson Test of English was flat against the prior period, performing well against a tough market backdrop. Enterprise Learning & Skills sales were up 4%, with another solid performance in Vocational Qualifications and Enterprise Solutions building momentum.