# Pearson pounded after COVID hits U.S. community college enrolment Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-10-15 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Pearson share drop after community college enrolment hit by Meta Description: Pearson sees a drop in US college enrolments due to COVID-19 surge and tight job market, but remains on track with new innovations like the Pearson+ app. URL: https://financedigest.com/pearson-pounded-after-covid-hits-u-s-community-college-enrolmenthtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-10-15t061310z1lynxmpeh9e07drtroptp4pearson-outlook-1736837557891-compressed.jpg) By Kate Holton LONDON (Reuters) -Global education group Pearson said enrolments at community colleges in the United States had been hit by a recent surge in COVID-19 cases and a tight labour market, limiting growth and sending its shares to their lowest level since January. In a key trading update covering the period when students buy textbooks and materials for the academic year ahead, Pearson said revenue from its U.S. [Higher Education](https://www.financedigest.com/higher-education-institutions-launch-wonderwomen-initiative-to-celebrate-international-womens-week.html "Higher education institutions launch #WonderWomen initiative to celebrate International Women’s Week") Courseware had fallen by 9% in the first nine months. Pearson said it remained on course for its full-year targets, however, as demand for Virtual Learning and [English Language](https://www.financedigest.com/uk-gives-bbc-world-service-20-million-pounds-to-support-english-language-broadcasting.html "UK gives BBC World Service 20 million pounds to support English language broadcasting") Learning helped sales to rise by 14% and 15% respectively. Its new Pearson+ [app was also being used by more than two million](https://www.financedigest.com/ride-hailing-app-cabify-raises-110-million-for-expansion-in-latam-spain.html "Ride-hailing app Cabify raises 0 million for expansion in LatAm, Spain") people. “That’s pretty good going for 12 weeks,” CEO Andy Bird told Reuters. Shares in the group were down 10% at 657 pence, marking a disappointment for the [former Disney executive Bird who has been running the group](https://www.financedigest.com/shareholder-group-iss-backs-barclays-board-over-former-ceo-staley.html "Shareholder group ISS backs Barclays board over former CEO Staley") for almost a year. We are left with a slight sense of ‘what might have been’: had enrolments been more robust, we would surely have been [talking about consensus upgrades,”](https://www.financedigest.com/u-s-ukraine-agree-to-launch-talks-to-upgrade-2008-trade-accord.html "U.S., Ukraine agree to launch talks to upgrade 2008 trade accord") analysts at Citi said. They [rate Pearson a ‘Buy’.”](https://www.financedigest.com/beat-the-exchange-rate-and-buy-that-dream-holiday-home-by-paying-in-pounds.html "Beat the exchange rate and buy that dream holiday home – by paying in pounds! ") Ian Whittaker, an independent analyst, said with a new reporting structure and only [growth rates](https://www.financedigest.com/hydrolyzed-collagen-market-sales-is-expected-to-clock-high-growth-rate-by-forecast-2028.html "Hydrolyzed Collagen Market Sales Is Expected To Clock High Growth Rate By Forecast 2028") given, it was difficult to track quite how the company had performed in the third quarter. He noted that revenues at the U.S. Higher Education Courseware division, often the source of Pearson [profit downgrades in recent years](https://www.financedigest.com/crop-merchant-louis-dreyfus-gets-profit-boost-in-volatile-year.html "Crop merchant Louis Dreyfus gets profit boost in volatile year"), was down 9% in the nine months, compared with a 2% fall in the first half of the year. Having been buffeted by rental markets and second-hand options for once-expensive textbooks, Pearson has embarked on a direct-to-consumer strategy [offering unlimited access to content to provide more reliable subscription](https://www.financedigest.com/why-the-banking-industry-needs-to-offer-more-than-just-enticing-perks-and-subscription-services.html "Why the banking industry needs to offer more than just enticing perks and subscription services") revenues. It hopes that the new app, which launched in the United States in July, will also deter students from buying second-hand books that had eaten into its profit. Trying to broaden its appeal, it is also pitching itself as a consumer-facing group offering training and skills for [life beyond its core schools](https://www.financedigest.com/1-in-3-adults-dont-believe-school-education-prepared-them-for-adult-life.html "1 in 3 adults don’t believe school education prepared them for adult life") and college remit. Its assessment and qualifications revenue rose 24%. Overall, group underlying [revenue rose by 10%](https://www.financedigest.com/soccer-european-revenues-rise-10-in-2020-21-despite-covid.html "Soccer-European revenues rise 10% in 2020-21 despite COVID") for the nine-months, down from 17% in the first six months, due to tough comparatives for the third quarter. The full-year consensus had been for adjusted operating profit of 377 [million pounds](https://www.financedigest.com/britain-announces-205-million-pound-auction-for-renewable-power-projects.html "Britain announces 205 million pound auction for renewable power projects"). (Reporting by Kate Holton, Editing by Paul Sandle and Alexander Smith) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---