Pearson's edu-testing profits soar

London-based Pearson Publishing, the standardized testing giant, reports a 72% "surge" in profits during 2011. But the profit picture in the U.S. is not as rosy as it looks. Most of the profits are coming from Penguin's ebook marketing. But it's Professional testing operation and its International Education unit, which includes Pearson schools and universities overseas., were also among the strongest performers, each increasing revenues by 15%.

However, Pearson's North American division actually saw a 2% dip in revenues because of what Dame Marjorie Scardino, chief executive, calls “austerity measures" affecting education spending in much of the developed world. But says Scardino, "we see significant opportunity in emerging markets in China, south-east Asia, Latin America, the Middle East and Sub-Saharan Africa - which together accounted for more than 40% of our International education revenues in 2011."

Meanwhile, Pearson’s North American Education business saw revenues decline by 2pc in 2011, amid mounting pressure on the price of text books in the US, a slowdown in the number of people enrolling in college, and delayed State purchasing decisions. -- The Telegraph