Book and newspaper publisher Pearson swung to a first-half profit from a year ago despite lower revenues thanks to cost-cutting efforts and an improving advertising market.
The company, which also publishes the Financial Timesand Les Echosnewspapers, said business advertising revenue growth turned positive for the first time in three years.
Pearson said first-half profits before taxes swung to a £2 million sterling gain from a loss of £1 million in last year's first half.
Pearson reported that sales decreased to £1.59 billion from £1.67 billion a year earlier, blaming weak currency exchanges. The publisher reaps about 68 per cent of its revenue and 87 per cent of its operating profit from North America.
Pearson said it expects its higher-education unit to grow in the 4 per cent to 6 per cent range, and forecasts that improving US state budgets will boost its sales to schools.
The company also said it is confident it will be paid in full the £151 million it says it is owed by the US Transportation and Security Administration for work completed in 2002.