British group Pearson, the world's largest education company, has cut profit guidance and dividend forecasts or 2017 to counter "unprecedented" changes impacting key markets. The firm's shares fell 30% following the announcement. Pearson's move to focus on education has been impacted by the US economy's recovery, as more people have taken up work than college places and students' increasing use of digital and rented content. The company may look to sell or recapitalise its 47% stake in Penguin Random House. It also plans a £50m tech spend and more aggressive move into ebooks and book rental.
British group Pearson, the world's largest education company, has cut profit guidance and dividend forecasts or the next two years to counter "unprecedented" changes impacting key markets. The firm's shares fell 30% following the announcement. Pearson's move to focus on education has been impacted by the US economy's recovery, as more people have taken up work than college places and students' increasing use of digital and rented content. The company may look to sell or recapitalise its 47% stake in Penguin Random House. It also plans a £50m tech spend and more aggressive move into ebooks and book rental.