EDU (EDU) H1 2024 earnings summary

Executive summary

• Revenue for 1H24 rose 64% year-over-year to $16.9m, driven by strong growth in both higher education and vocational segments.

• Achieved first net profit after tax since the pandemic, with $28k profit in 1H24 versus a $1.6m loss in 1H23, supported by strong enrolment growth.

• Student enrolments surged, with higher education up 85% and vocational up 24% compared to 1H23; Ikon saw record enrolments and revenue, while ALG continued a modest recovery.

• Strategic focus on in-demand courses aligned to skills shortages in healthcare, education, and community services.

Financial highlights

• EBITDA increased to $2.3m from $0.2m in 1H23, with EBITDA margin up to 13% from 2% in 1H23.

• Gross margin improved to 55% from 54% year-over-year.

• Net cash position rose to $6.3m, up $5.2m from December 2023; cash at bank was $8.0m at 30 June 2024.

• Operating cash flow was $7.5m, up $5.3m from the prior period.

• Net profit after tax: $28k, a turnaround from a $1.6m loss in 1H23.

Outlook and guidance

• Revenue and earnings expected to remain strong for FY24, with further operating leverage anticipated.

• Board expects higher revenue and improved operating results in 2H24 for both Ikon and ALG, based on current enrolments and application pipeline.

• Uncertainty increases post-FY24 due to proposed government caps on new overseas student commencements from 2025.

• Continued investment in product development, with new courses launching in 1H25.