EDU (EDU) H2 2024 earnings summary

Executive summary

• Revenue increased 96% year-over-year to $42.3m, with a significant acceleration in 2H24, driven by strong enrolment growth in both higher education and vocational segments.

• Net profit after tax (NPAT) turned around to $2.6m from a $3.0m loss in the prior year, with a 10% NPAT margin in 2H24.

• EBITDA rose to $7.9m, up $7.3m from FY23, with margin expanding 16 percentage points to 19%.

• Operational efficiency improved through integration of business units and a shared services model.

• Strategic entry into the postgraduate market with accreditation of new Masters and Bachelor courses.

Financial highlights

• Gross profit rose 114% to $24.3m, with gross margin up 5 percentage points to 58%.

• EBITDA improved from $544k in FY23 to $7.9m, with 2H24 EBITDA at $5.6m and margin of 22%.

• Cash balance at year-end was $6.5m, up $4.2m year-over-year, after a $0.9m share buyback and $0.5m debt repayment.

• Net assets increased 19% to $12.4m.

• Net profit after tax was $2.6m, including a $0.3m gain on lease modification.

Outlook and guidance

• Revenue, EBITDA, and NPAT are expected to increase in FY25, building on strong 2H24 momentum and new course launches.

• Ikon enrolments in T1'25 up 30% from prior period; new postgraduate courses to commence in 1H25.

• Full-year benefit anticipated from enrolment growth and new course launches in 1H25.

• Regulatory uncertainty and tighter visa settings may impact future international student enrolments, especially for ALG.