MegaStudyEdu (215200) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 was ₩719.8 billion, down 23% year-over-year from ₩935.2 billion in 2023.

• Operating income for the same period was ₩106.7 billion, a 16% decrease from ₩127.4 billion year-over-year.

• Net income attributable to controlling interests was ₩81.0 billion, down from ₩94.6 billion in the prior year.

• The company completed several mergers among subsidiaries to enhance operational efficiency and synergy.

Financial highlights

• Gross profit for the period was ₩311.5 billion, slightly down from ₩313.4 billion year-over-year.

• EBITDA and cash flow from operations remained robust, with depreciation and amortization totaling over ₩61 billion.

• Total assets at quarter-end were ₩899.7 billion, with total liabilities of ₩397.3 billion and equity of ₩502.4 billion.

• Basic and diluted EPS for the period were ₩7,316, compared to ₩8,118 in the prior year.

Outlook and guidance

• The company continues to invest in AI and edtech, expecting the domestic edtech market to grow to ₩10 trillion by 2025.

• No specific quantitative forward guidance was provided, but management highlighted ongoing cost controls and digital transformation.