Pearson reports 7% underlying sales growth as it acquires language learning platform Mondly

Pearson has acquired global online language learning platform Mondly against a backdrop of 7% underlying sales growth in the first quarter of 2022. 

In its latest trading update, the academic publisher said its Assessment and Qualifications division saw underlying sales growth of 22% in the first three months of the year, while Virtual Learning was up 3%. English Language Learning sales increased 18%.

Elsewhere in the trading update, Pearson said Higher Education sales were down 5% due to “expected declines" in the US reflecting the continued fall in enrolments and courses per enrolment. 

Pearson said it expected the acquisition of Mondly, an online language learning player which offers learning in English and 40 other languages, to accelerate revenue growth from 2023 onwards for its English Language Learning division and continues to expect mid-teens margins for the division by 2025.

“Today’s acquisition marks another step in our digital strategy, giving us an exciting foothold in the fast growing direct-to-consumer English learning market and building yet more connectivity across the entire Pearson portfolio,” Andy Bird, c.e.o. of Pearson, said. 

“Mondly is a fast growing and profitable business that expands our reach and scale in the language learning market and drives growth for the company. This acquisition is strategically important to the group as well as being accretive and driving shareholder returns.”

He said Pearson had continued to make “strong strategic, operational and financial progress” through the first quarter, and the company remains on track to deliver on its 2022 financial expectations and medium term guidance. "We remain sharply focused on the successful execution of our strategy and we are encouraged by the momentum we are seeing across the business," he added.