Pearson
lost almost a third of its market value on Wednesday after it ditched
its profit and dividend forecasts in a battle to respond to a shift to
digital that has already hit the music and newspaper industries.
Education group
The world's biggest education
company, which traditionally makes most of its profit from textbooks and
testing, is facing structural turmoil as customers turn to cheaper
digital alternatives, or choose to rent instead of buy content.
The greatest change is being felt in North America,
its biggest market, where a fall in college enrollment numbers due to
an improving economy have compounded the digital switch.
Shares in the 173-year-old British
company fell 30 percent on Wednesday, on course for their worst day ever
and wiping off 1.9 billion pounds ($2.3 billion), after the group said
it could no longer put a figure on its 2017 dividend, piling pressure on
CEO John Fallon...
http://www.cnbc.com/2017/01/18/pearson-plunges-as-digital-switch-forces-new-profit-warning.html
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