FT and Penguin owner Pearson sees digital profits rise

A Penguin book stand in India Pearson has seen strong growth in developing markets Educational publisher and FT owner, Pearson, has reported a rise in profits thanks to improved digital sales and growth in emerging markets. Pre-tax profits at the group were up 72% to £1.15bn ($1.8bn) including one off items for the year to 31 December. Adjusted operating profits from continuing operations were up 12% at constant exchange rates to £943m. In December last year the LSE agreed to pay £450m for Pearson's 50% stake in FTSE international. "Pearson expects to achieve continued sales and operating profit growth in 2012, in spite of tough trading conditions and rapid industry change," the company said in its statement. Sales of digital products increased by 18%, making up a third of the group's total sales. At the FT newspaper digital subscriptions amounted to nearly half of total paid circulation whilst Penguin saw e-book sales rise by 106% to make up 12% of revenues. Total sales at Penguin were almost unchanged at £1.04bn, down 1% on 2010. The company also saw a 24% rise in sales in developing markets where it saw strong growth in demand for its educational products.