China’s largest private education provider New Oriental(NYSE: EDU), today announces its unaudited financial results for the first fiscal quarter ended August 31, 2020, the first quarter of New Oriental’s fiscal year 2021.
According to the report, the total net revenues during the period decreased by 8.0% year-over-year to US$986.4 million, the operating income decreased by 38.9% year-over-year to US$150.3 million, and the net income attributable to New Oriental was US$ 174.7million, a decrease of 16.4% year-over-year.
For operating figures, total student enrollments in academic subjects tutoring and test preparation courses increased by 13.5% year-over-year to approximately 2,961,100, and the total number of schools and learning centers was 1,472, an increase of 211 compared to the same period last year, and an increase of 7 compared to 1,465 as of May 31, 2020.
“COVID-19 outbreak continues to raise hurdles for businesses across the globe, and inevitably affect our business operations and financial condition for the first quarter of the fiscal year 2021. However, we are pleased to report a set of encouraging results. Net revenue for the first quarter was down 8.0% year over year, which is better than what we guided in the previous quarter.” Said Michael Yu, New Oriental’s Executive Chairman. He believes that the slight decrease was mainly due to the delayed enrollment for summer and autumn classes and the shortening of summer vacation in many major cities, plus the delayed resumption of offline education services.
However, as the pandemic gradually fades in China, positive signs emerged. K-12 all-subjects after-school tutoring business, New Oriental’s key growth driver, has achieved year-over-year revenue growth of approximately 8%. As schools have reopened since this September, New Oriental’s student enrollments and cash proceeds from students for the autumn semester also saw an increasing trend.
New Oriental’s CEO Zhou Chenggang said: “We expect the industry will undergo a wave of market consolidation once the pandemic fades away. We remain committed to ramping up our expansion effort to get prepared for further taking market share from other players post-COVID.”During the first quarter of New Oriental’s fiscal year 2021, New Oriental has opened seven new offline training schools in new cities. And for OMO strategies, more resources will be invested, which will enable the company’s service to virtually reach a broader pool of students in existing cities and the surrounding satellite cities.