New Oriental Posts Loss In Q2

(RTTNews) - New Oriental Education & Technology Group (EDU) Tuesday reported a second-quarter net loss attributable to the company of $25.8 million compared to last year's net profit of $4.3 million. Loss per ADS totaled $0.16 versus profit per ADS of $0.03 a year ago.

Non-GAAP net income attributable to New Oriental, which excludes share-based compensation expenses and loss from fair value change of long-term investments, was $23.0 million, higher than last year's $13.6 million. On a Non-GAAP basis, earnings per ADS rose to $0.14 from $0.09 a year ago.

Total net revenues for the second quarter grew 27.8 percent to $597.1 million, mainly due to increases in student enrollments in K-12 after-school tutoring courses, which recorded a year-over-year revenue growth of about 38 percent.

Furthermore, U-Can middle and high school all-subjects after-school tutoring business grew by about 39 percent, and the POP Kids program achieved a growth of about 35 percent.

Looking ahead, New Oriental expects total net revenues for the third quarter to be in the range of $769.9 million - $793.2 million, representing year-over-year growth of 25 percent - 28 percent.