New Oriental reports $614M in net revenues for Q3 FY 2022, 48.4% decrease YoY
2022-04-27 17:21:33

New Oriental (NYSE: EDU/9901.SEHK), a provider of private educational services in China, recently announced its unaudited financial results for the third fiscal quarter ended February 28, 2022.   

Total net revenues decreased by 48.4% year-over-year to $614.1 million for the third fiscal quarter of 2022.

Net revenues from educational programs and services for the third fiscal quarter were $506.4 million, representing a 54.1% decrease year-over-year. The decline was mainly due to the cessation of K-9 academic after-school tutoring services in order to comply with the government policies in China.

Operating loss was $141.2 million, compared to an income of $101.5 million in the same period of the prior fiscal year.

Net loss attributable to New Oriental was $122.4 million for FY 2022, compared to an income of $151.3 million in the same period of the prior fiscal year. As of February 28, 2022, New Oriental had cash and cash equivalents of $1.46 billion. 

The company said the total number of schools and learning centers was 847 as of February 28, 2022, a decrease of 778 and 822 compared to 1,625 as of February 28, 2021 and 1,669 as of May 31, 2021, respectively. The total number of schools was 111 as of February 28, 2022.

"In the first nine months of the current fiscal year, our remaining key business, the overseas test preparation and overseas study consulting business increased by 15% year-over-year. Our domestic test preparation business targeting adults and university students recorded a rapid growth of approximately 59% year-over-year,” Michael Yu, New Oriental's Executive Chairman, commented. “Simultaneously, we are actively exploring various new business opportunities, including non-academic tutoring, intelligent learning system and devices, study tour and research camp, educational materials and digitalized smart study solutions, as well as exam preparation courses designed for students with junior college diplomas to obtain bachelor's degrees.”





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