By: E&P Staff Pearson PLC reported a strong 2008 financial performance, especially compared with other publishers. Net profits were up 2.8%, and in contrast to U.S. newspaper companies, which have dramatically cut their stock dividends, or suspended them altogether, the parent of the Financial Times increased its dividend by 7%.
But the FT could take little credit for the 2008 results.
Advertising revenue at FT Publishing were down 3% for the year, with most of the weakness coming in the fourth quarter. Circulation revenue at the newspaper did jump 16% on single-copy cover price increases from 1 pound to 1.8 pounds in the last year and a half.
FT has said it will eliminate 80 jobs this year, and encourage employees to take shorter work weeks.
At the newspaper?s corporate unit, FT Group, profits were up 13% for the year.
Fully 67% of FT Group revenue came from digital services, chiefly its Interactive Data division. That?s an increase from 28% in 2000. Conversely, advertising, which accounted for 52% of the unit?s revenue in 2000, was just 25% of the total in 2008.
Pearson CEO Marjorie Scardino said advertising revenue accounts for just 4% of total revenue at the company, which also owns Penguin Books.
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