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The Financial Times Group

Sales:
05 629M / $1,082M;
04 587M / $1,010M;
03 588M / $1,011M;

Adjusted operating profit:
05 101M / $174M;
04 71M / $122M;
03 41M / $71M;
FT Publishing
  2005
£m
2004
£m
Headline
growth
%
Underlying
growth
%
Sales 332 318 4 4
Adjusted operating profit 21 4 - -

Profits up by 17m on 14m sales improvement

Advertising growth continues and Financial Times returns to profit

  • FT newspaper sales up 6% to 221m; 14m profit improvement to 2m.
  • FT advertising revenues up 9% (and up 18% in the fourth quarter), improving through the year. Sustained growth in luxury goods and worldwide display advertising. FT.com advertising revenues up 27% as FT's biggest advertisers shift to integrated print and online campaigns.
  • More than 90% of advertising revenue improvement converted to profit in 2005.
  • FT's average worldwide circulation 2% lower for the year at 426,453 but 1% higher in the second half at 430,635. FT.com's paying subscribers up 12% to 84,000 and average monthly audience up 7% to 3.2 million.

Sustained progress at network of business newspapers

  • Sales broadly level and profits 3m higher at the FT Group's other business newspapers and magazines.
  • Les Echos advertising revenues and circulation level with 2004 (average circulation of 119,000) despite tough trading conditions.
  • FT Business improves margins and profits with good growth in international finance titles.
  • FT Deutschland reduces losses further despite a weak advertising market in Germany, and increases average circulation by 6% to 102,000.
  • The Economist, in which Pearson owns a 50% stake, increases its circulation by 10% to 1,038,519 (for the January - June ABC period).
Interactive Data Corporation (NYSE: IDC)
  2005
£m
2004
£m
Headline
growth
%
Underlying
growth
%
Sales 297 269 10 7
Adjusted operating profit 80 67 19 13

Record results in 2005: Sales up 7% to 297m; Profits up 13% to 80m; Margins up 2% points to 26.9%.

Strong organic growth and operating improvements

  • FT Interactive Data, IDC's largest business (approximately two-thirds of IDC revenues), generates strong growth in North America and returns to growth in Europe.
  • Modest growth at Comstock, IDC's real-time datafeed business for global financial institutions, and at CMS BondEdge, its fixed income analytics business.
  • Renewal rates for IDC's institutional businesses remain at around 95%.
  • eSignal, IDC's active trader services business, increases headline sales by 27% with continued growth of subscriber base and full-year contribution from FutureSource, acquired in September 2004.
  • Continued progress in transition to two new consolidated data centres, enabling IDC's four major businesses increasingly to feed off one centralised data and technology infrastructure.

Continued expansion into adjacent markets

  • Acquisition of IS.Teledata for $51m (net of cash acquired) in December 2005 adds web-based financial data applications and further expands IDC's presence in continental Europe.
  • Agreement to acquire Quote.com and related assets for $30m in February 2006 which will broaden IDC's range of online services for active traders and financial professionals, and create a new revenue stream in online financial advertising.

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