On April 24, New Oriental Education Technology (Group) Co., Ltd., a private education service provider, (099011942videogameHK) publishes unaudited financial results for the third quarter ended February 29, 2024.
In the third quarter of 2024, net revenue of New Oriental was $1.2073 billion, up 60.1% from a year earlier; operating profit was $113.4 million, up 70.6% from a year earlier; net profit attributable to shareholders of New Oriental rose 6.8% to $87.2 million; operating profit margin for the current quarter was 9.4%, compared with 8.8% for the same period in the previous fiscal year. The financial report shows that the revenue growth is mainly due to the increase in revenue driven by its new business of educational attributes and the selection of proprietary products and live e-commerce business in the East.
Total share-based compensation expenses within operating costs and expenses increased by 28.3% to $27.5 million in the third quarter of fiscal 2024.
Yu Minhong, executive chairman of New Oriental Board, said1942videogameWe are pleased to see that the growth momentum continued to grow in the third quarter and exceeded our expectations. The business of preparing for exams abroad and consulting abroad maintained a strong growth momentum, showing an increase of about 52.6% and 25.7% respectively over the same period last year. At the same time, the domestic test preparation business for adults and college students recorded an increase of about 53.2% compared with the same period last year. All of our new education businesses achieved remarkable results in the quarter, with revenue up 72.7% year-on-year. Among them, the non-disciplinary tutoring business was carried out in nearly 60 cities this financial quarter, with 355,000 applicants; intelligent learning systems and equipment were also used in about 60 cities, with 188000 active paying users in the financial quarter. "
The latest research report released by BoCom International pointed out that the related literacy and learning machine business of New Oriental K9 continued to grow at a high speed, and its income contribution rose to 22%. As of March 2024, it is estimated that the New Oriental Literacy Center accounts for nearly 50% of the total number of teaching points, year-on-year or more than 100 teaching points. Driven by the peak winter vacation season, non-disciplinary literacy business income is expected to grow by 115% year-on-year, learning machine income by 78%, a total contribution of 22%, an increase of 5 percentage points over the same period last year.
According to cicada mother data, Oriental selection GMV rose 75% to 5 billion yuan in the third quarter compared with the same period last year, mainly due to Douyin account "Walking with Hui", as well as contributions from Taobao, self-owned APP and self-made products. Revenue is expected to be about 1.96 billion yuan, an increase of about 56% over the same period last year, mainly due to the incremental contribution of GMV to the new account. Oriental is expected to select and adjust the operating profit margin of 16%, offsetting the optimization of the educational profit margin of New Oriental.
In the first three quarters of fiscal 2024, New Oriental's net revenue was $3.1769 billion, up 48.6 per cent from a year earlier. Operating profit was US $339.9 million, an increase of 139.4% over the same period last year. Non-GAAP 's operating profit for the first nine months of fiscal 2024 was $436.6 million, up 116.9% from a year earlier.
New Oriental expects total net revenue in the fourth quarter of fiscal 2024 (March 1, 2024 to May 31, 2024) to be between $1.1015 billion and $1.1273 billion, a year-on-year increase of 28% to 31%. Net revenue in renminbi terms is expected to rise by between 34 per cent and 37 per cent.
According to the financial report, New Oriental had net operating cash flow of about $109.4 million and capital expenditure of $80.1 million in the third quarter of fiscal 2024.
As of February 29, 2024, New Oriental's cash and cash equivalents were $2.0136 billion. In addition, the company's term deposits are $1.5708 billion and short-term investments are $1.1753 billion.
As at 29 February 2024, the total number of New Oriental schools and learning centres was 911, an increase of 68 compared with 843 as at 30 November 2023 and 199 as compared with 712 as at 28 February 2023. As of February 29, 2024, the total number of schools is 81.
In addition, as of April 23, 2024, New Oriental had repurchased about 6 million American depositary shares in the open market under the share repurchase program, with a total value of approximately $195.3 million.
As of April 24, New Oriental closed at HK $70.9, up 1.29 per cent.