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    Luke Holbrook • Morgan Stanley

    Luke Holbrook's questions to Pearson PLC (PSO) leadership

    Luke Holbrook's questions to Pearson PLC (PSO) leadership • H1 2025

    Question

    Luke Holbrook asked for a detailed bridge to the significant H2-weighted revenue growth guidance and questioned the reasons for the Q2 growth deceleration in the Higher Education segment.

    Answer

    CFO Sally Johnson attributed the H2 weighting to known factors: new contracts launching in Assessments & Qualifications and Enterprise Learning, the lapping of a prior-year school loss in Virtual Schools, and more favorable comps in English Language Learning. Tom ap Simon, President of Higher Education and Virtual Learning, explained the Q2 Higher Ed slowdown was due to a smaller adoption cycle in College and Career Readiness, ramp-up time for a new sales team, and temporary delays in state-level purchasing.

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    Luke Holbrook's questions to Pearson PLC (PSO) leadership • H1 2025

    Question

    Luke Holbrook of Morgan Stanley requested a detailed bridge for the H2-weighted revenue growth guidance, particularly for Q4. He also asked about the reasons for the Q2 growth deceleration in the Higher Education segment.

    Answer

    CFO Sally Johnson attributed the H2 growth acceleration to new contracts in Assessments & Qualifications, the anniversary of a Virtual School loss, and easier comps in English Language Learning. President of Higher Education, Tom ap Simon, explained the Q2 Higher Ed slowdown was due to timing in the College and Career Readiness business and delays in some government spending.

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