By: E&P Staff With a 9% increase in ad revenues over 2004, the Financial Times was profitable in 2005 for the first time in four years, London-based Pearson PLC reported Monday.
For the year, the salmon-colored flagship financial daily turned a profit of 2 million pounds, or $3.48 million, on revenues that rose 6% to 225 million pounds, or $391.5 million. Ad revenues were up 18% in the fourth quarter, the company said.
FT's performance came during a year of some tumult for the newspaper, which was said to be headed for the auction block in rumors top management vigorously denied. In November, FT Editor Andrew Gowers resigned, saying he had differences of strategic vision with Pearson. He was replaced by Lionel Barber, who had been in charge of the U.S. edition.
Pearson said FT revenues so far this year are up 12% over 2005, and its circulation was up 4%.
FT's average worldwide circulation declined 2% in 2005, but was up 1% higher in the second half to 430,635, Pearson said. It said FT.com, which showed an ad revenue gain of 27%, increased the number of paid subscribers by 12% to 84,000.
The Financial Times Group, which includes newspapers in Germany, France, and a 50% stake in The Economist magazine, is "expected to achieve a further significant profit improvement" in 2006, Pearson said. The group accounts for 15% of sales and 20% of continuing operating profit in the big media company.
Pearson said ad revenues and circulation were flat at its Les Echos financial newspaper. FT Deutschland continued to be a loss-maker, but at a reduced level, Pearson said, without giving specifics. It said the German paper's circulation increased 6% to 102,000.
Overall, Pearson's net income more than doubled to 624 million pounds, or $1.09 billion, from 262 million pounds. Sales of education business, which account for more than 60% of its revenue, were up 15% in 2005.
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