"The 29% year-on-year growth in income was mainly due to the comprehensive recovery of the general after-school education business of K12 primary and secondary schools, which is the growth engine of the company," Yu Minhong, executive chairman of the board of directors.
The US-listed education provider, New Oriental, published its financial report on April 20, 2021. According to the data, the firm's educational programs and services revenue rose 30.5% to USD 1.1 billion in 3Q FY 2021, mainly driven by increases in student enrollments in K-12 after-school tutoring courses. Net profit was USD 151 million, a year-on-year increase of 9.88%, exceeding the previous expectation of USD 104 million.
The total number of registered enrollments increased by about 57% year-on-year reaching 2,296,800.
At the same time, with vaccinations on the rise, the overseas business (most affected by the epidemic) has gradually recovered, seeing a 12% decline year-on-year in the overseas test preparation business and an increase of 11% in overseas consulting and study tour business.
As for offline business, New Oriental saw an increase in the number of schools and centers reaching 118 schools and 1625 centers, up about 43% year-on-year.
OMO business has helped the firm optimize its profit structure. In the current quarter, New Oriental's non-GAAP operating profit margin was 9.7%, narrower than the decline in the previous quarter.
According to the firm's 4Q Guidance, total net revenues are expected to be in the range of USD 1.1 billion – 1.14 billion, representing year-on-year growth in the range of 38% to 43% vs. a consensus of USD 1.09 billion.