MediaWeek Report (Vol 13, No 9): Education News - Wiley Reports & Pearson shares jump 11% as activist Cevian discloses stake

Wiley reported 4Q and full year results:

FOURTH QUARTER 2020 SUMMARY

• GAAP Results: Revenue of $475 million (-3%) and EPS of -$2.83, primarily due to impact of unusual items totalling -$3.49 per share, including non-cash goodwill and trade name impairments
• Adjusted Results (at constant currency): Revenue -2%, EBITDA -23%, and EPS -44%, mainly reflecting the COVID-19 impact on print books, test prep, and corporate training
• Strong momentum in Open Access research publishing and digital courseware
• Addition of four new university partners in Education Services (Drake University, University of Iowa, Methodist University, and Point University)

FISCAL YEAR 2020 SUMMARY

• GAAP results: Revenue of $1,831 million, and EPS of -$1.32 primarily due to fourth quarter non-cash goodwill and trade name impairments
• Adjusted results (at constant currency): Revenue +3%, EBITDA -8%, and EPS -21%
• Free Cash Flow of $173 million, up $24 million (+16%) from prior year
• Digital products and tech-enabled services rose to nearly 80% of total revenue

Pearson Shares Jump on Cevian Investment:

From Reuters:

Shares in Pearson (PSON.L) jumped 11% on Friday after activist investor Cevian Capital disclosed a 5.4% stake in the British education publisher, lifting expectations for a performance boosting shake-up at the company. Cevian Capital, which holds large stakes in companies such as Ericsson (ERICb.ST), ABB (ABBN.S) and CRH (CRH.L), said it had been following Pearson closely for several years.