Pearson Confirms Omar Abbosh will Assume the role of CEO in January

Pearson PLC confirmed that its new Chief Executive, Omar Abbosh, will assume his role on January 8, succeeding Andy Bird, who has led the company since 2020. Abbosh’s appointment was announced in September, and he previously headed Microsoft Corp’s Industry Solutions business.

Bird, who spent 14 years at Walt Disney Co, joined the Pearson board as an independent non-executive director in May 2020 and became CEO in August of that year.

Pearson also announced an upgrade to its profit guidance for 2023 as it continues to experience strong operational momentum and positive financial performance in the third quarter. The London-based educational materials publisher reported a 2% year-on-year rise in revenue for the third quarter on an underlying basis. Over the nine-month period, revenue also increased by 2%.

Pearson now anticipates that group revenue growth, excluding OPM and strategic review businesses, will be at the upper end of the existing low-to-mid-single-digit guidance. The company has also raised its guidance for adjusted operating profit to a range of $690 million to $696 million, approximately $24 million higher than the previous guidance.

In 2022, Pearson reported book sales of $4.65 billion, a 12% increase from $4.15 billion in 2021. Adjusted operating profit also saw an 18% rise, reaching $552 million, up from $466 million.

Pearson remains on track to achieve $145 million in cost efficiencies in 2023. Chief Executive Andy Bird commented, “This third quarter performance illustrates the continuing momentum across our businesses, led by Pearson VUE and Pearson Test of English. Our Higher Education business reported as expected and remains on plan to return to growth next year.”

In the third quarter, underlying revenue growth was 11% for the Assessment & Qualifications division, which includes Pearson VUE, 21% for English Language Learning, incorporating Pearson Test of English, and 5% for Workplace Skill. Underlying revenue decreased by 29% for Virtual Learning and 8% for Higher Education.

Pearson also noted that it has repurchased $139 million of its shares as part of its buyback program, which began in September with a total value of approximately $363 million.

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