By Joey Gardiner, 30 July 2001 18:05
NEWS Media giant Pearson - the group that owns the Financial Times - has announced its six month results topped estimates, despite figures showing its web business still haemorrhaging cash at an alarming rate. Pearson reported profits of £5m on revenues of £1.5bn for the six months ending July. However, the group's internet business - which includes the FT.com website, the economist.com and FT Deutschland - cost the firm £81m in the same period, generating just £3m in revenue. Pearson said it will pump another £61m into the enterprise during the second half of the year. It claimed it is on track to break even in its new media business by the end of 2002. Pearson's small group profit was recorded before including a write-off for lost goodwill - the monetary value of a firm's brand - of £188m. Many hi-tech companies have been forced to make huge write-offs for goodwill, with dot-com ventures now having a fraction of the market value allotted to them a year ago. Pearson said it was pleased with its results achieved against a wall of falling advertising revenues. Its share price rose 4.7 per cent Monday.
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