Publisher Pearson Group said its education business would fuel a good full-year result but that a slump in advertising sales would drag its FT Group division sharply lower.
Pearson, the world's largest education publisher, said pre-tax profit before goodwill rose to £5 million sterling, after investment in Internet-related ventures of £88 million.
Pearson shares were 2.7 per cent down at £10.10 this morning, after a sharply rally at the end of last week on the back of two broker upgrades.
Pearson, which owns the Financial Timesnewspaper, said advertising revenues fell 6 per cent while advertising volumes were 18 per cent lower in the first half and FT Group profits were expected to be some 15 per cent lower than in 2000.
"Overall, all of our businesses are performing strongly in their markets and, in a difficult economic environment, will report goods profits for the year," the company said.