British media group Pearson saw its shares drop sharply yesterday despite the company's 19 per cent rise in annual profits and its renewed pledge to deliver double-digit earnings growth.

Pearson, one of the world's biggest educational publishers as well as the owner of the Financial Times and game show The Price is Right, said its operating profits rose to £389 million sterling (€572 million) in 1998 versus £328 million sterling, excluding goodwill and exceptional items.

Although the results were broadly in line with expectations, they failed to inspire, analysts said, triggering profit-taking in Pearson's shares, which have roughly doubled in price over the past year and a half.

Pearson chief executive Ms Marjorie Scardino acknowledged that the stock was on a high multiple. "(But) these are outstanding results and, in the media sector, we are certainly outperforming," she said.