UK media firm Pearson rules out FT sale

Publisher Pearson ruled out a sale of its flagship Financial Times newspaper as it posted a 2

Publisher Pearson ruled out a sale of its flagship Financial Timesnewspaper as it posted a 2.8 per cent rise in 2003 profit to meet forecasts.

Pearson, which also publishes textbooks and owns Penguin books, said advertising trends at its business newspapers continued to improve in January and February as the advertising industry emerges from one of the deepest slumps in its history.

It posted a pre-tax profit of £410 million ($765 million) in 2003, on turnover down 6 per cent to £4.05 billion.

Pearson shares, which have underperformed the media sector by 19 per cent over the past 12 months, opened a little firmer but stood 0.4 per cent lower at 617-1/2 pence, valuing the company at around £5 billion.

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Pearson said advertising revenues at the FT, which were 18 per cent lower in the first half of 2003 and 12 per cent lower in the second half, are 4 per cent lower in the year to date.

Finance director Ms Rona Fairhead said it was too early to call the turn in business advertising, although she did expect business ad revenues would return to their former peaks at some stage in coming years.

"There are a lot of good reasons [to keep the FT]. We have a whole group of business newpapers worldwide. We benefit from having that breadth. We have terrific brands and we know how to manage brands."

Despite the constant denials, there has been some media speculation that the loss-making FTmay no longer be regarded as core in Pearson's operations.