Pearson's H1 brings extra confidence for 2008

By Georgina Prodhan, European Media Correspondent

LONDON (Reuters) - Publishing group Pearson (PSON.L), owner of the Financial Times, posted stronger than expected results and an upbeat outlook on Monday in a display of resilience in an otherwise depressed media sector.

The world's biggest educational publisher, which also owns Penguin books, increased operating profit by 38 percent in the first half and said it was more confident in its outlook for 2008.

Its shares rose more than 3 percent.

"In spite of the macroeconomic conditions, we are on track to make further progress on our financial goals and our strong trading performance has increased our confidence in the full-year outlook," the company said in a statement.

Pearson has been cutting its exposure to advertising and adjusting its portfolio to exploit digital opportunities, for example in interactive learnings -- a strategy it says is paying off in the current uncertain economic environment.

First-half operating profit was 124 million pounds, adjusted for effects of acquisitions and disposals, while underlying sales, adjusted for portfolio changes and currency movements, grew 6 percent to 1.97 billion pounds.

Both sales and profits beat market consensus, although Pearson's results are heavily weighted towards the second half, which contains the back-to-school and Christmas seasons important for its education and Penguin divisions.

Pearson also raised its interim dividend by 6.3 percent to 11.8 pence.