Pearson hit despite Net effect.

THE Internet bubble hasn't burst at Pearson, which is upping its dotcom spend at a time when most rivals are scaling back.

The media group says it has 'further accelerated' investment in its Financial Times web spin-offs and Learning Network portal and the FT sites are on track to break even in 2002.

'We are strongly committed and we are getting good results,' it says.

Analysts now expect Pearson to spend [pounds sterling]200m on online projects this year, up to [pounds sterling]50m more than forecast.

The shares initially rose more than 5pc but by the end of trading had fallen 60p to 1622p. Analysts said the upbeat comments were overshadowed by fears of an advertising slowdown.

Warnings that revenues have slowed at the Wall Street Journal are prompting fears of problems at the Financial Times.

'Pearson hasn't given us much indication of what it expects next year,' says one analyst.