Pearson trading cheers shares
Thursday 19 December 1996
The company said the effects of the strengthening pound, which some had feared would depress US and European revenues, would have no material effect on 1996 earnings, which are likely to reach about pounds 250m.
Pearson said it would take a pounds 5m charge for reorganisation of its back office in both 1996 and 1997, in line with expectations.
But the company, which owns the Financial Times, Thames Television and Penguin Books, conceded that its share of the Channel 5 retuning budget would be sharply higher than originally anticipated, hitting about pounds 37m, or 24 per cent of the revised pounds 150m total forecast - in line with Pearson's equity stake in Britain's soon-to-be-launched fifth terrestrial channel. Even that figure was seen last night as conservative.
David Elstein, chief executive of Channel 5 Broadcasting, said the budget for retuning the Channel 37 frequency, one of two awarded to Channel 5 for the new service, would be about pounds 120m. Another pounds 50-pounds 60m would be required to retune households in the Channel 35 areas of the country, bringing the total to about pounds 180m, as reported in The Independent yesterday.
Pearson's share would be about pounds 45m, as revealed in The Independent yesterday.
Mr Elstein said that the shareholders of Pearson - which include Pearson, United News & Media and Luxembourg-based CLT - were "relaxed" about the higher budget, because each increase in the number of households retuned would expand the eventual market for Channel 5.
"As long as we keep our per-household costs to about pounds 12, we can expect that the extra retuning costs will be covered within two years of the channel's launch," he said yesterday.
He added that differences in the forecasts of the eventual retuning costs were due to uncertainty about the number of households likely to fall within the Channel 35 catchment areas.
"We just don't know how many homes we will have to retune," he said, adding that all forecasts were "guesstimates".
Pearson said its television subsidiary saw its operating profits rise strongly in 1996, helped by overseas sales.
- 1 Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
- 2 Margaret Thatcher 'expressed fears of Asian rising' at Anglo-Irish summit in 1984
- 3 Sussex couple die in suspected Christmas Day 'suicide pact'
- 4 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 5 The Unluckiest People of the Year 2014 (and one very unlucky giraffe)
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Immigrants make UK racist, says Ukip councillor Trevor Shonk
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...