The education publisher, Pearson announced on Tuesday that the company’s Online Program Management (OPM) partnership with Arizona State University (ASU) will come to an end in June 2023. The group reiterated the existing financial guidance remains unaltered.
The groundbreaking partnership between Pearson and ASU has helped the university improve and extend its online learning offerings and resources over the last ten years.
Pearson and ASU have a shared goal of making a positive difference in the lives of students, and their very successful cooperation has aided tens of thousands of students in realising their full potential through a college education.
The contract termination will have a minor earnings impact in 2022 and 2023, however, this will be mitigated by cutting related costs and re-directing investment to Pearson’s strategic development opportunities in the following years.
The group’s financial forecast for 2022 which was provided in its preliminary results in February this year remains unchanged, as does the medium-term group level guidance.
As Pearson spends to drive growth, they estimate group revenue to grow at a mid-single-digit CAGR from 2022 to 2025, and group margins to stay relatively steady in the near term, improving to the mid-teens by 2025.
Pearson’s shares fell 0.7% to 772p in early morning trade on Tuesday.
