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New Oriental Announces Results for the Fourth Fiscal Quarter and the Fiscal Year Ended May 31, 2024
EDUNEW ORIENTAL(EDU) Prnewswire·2024-07-31 09:06

Core Viewpoint - New Oriental Education & Technology Group Inc. reported strong revenue growth for the fourth fiscal quarter and fiscal year ended May 31, 2024, despite a significant decline in operating income and net income due to increased operating costs and expenses. Financial Highlights - Total net revenues for the fourth fiscal quarter increased by 32.1% year over year to US1,136.7million[2][8]−Operatingincomedecreasedby78.11,136.7 million [2][8] - Operating income decreased by 78.1% year over year to US10.5 million [2][11] - Net income attributable to New Oriental decreased by 6.9% year over year to US27.0million[2][12]−Forthefiscalyear2024,netrevenuesreachedUS27.0 million [2][12] - For the fiscal year 2024, net revenues reached US4,313.6 million, a 43.9% increase year over year [16][36] - Operating income for the fiscal year was US350.4million,an84.4350.4 million, an 84.4% increase year over year [16][36] Operating Highlights - The total number of schools and learning centers increased to 1,025 as of May 31, 2024, up from 911 as of February 29, 2024 [4] - The overseas test preparation and overseas study consulting businesses grew by approximately 17.7% and 17.3% year over year, respectively [5] - New educational business initiatives recorded a revenue growth of 50.3% year over year [5] Cost and Expenses - Operating costs and expenses for the fourth quarter were US1,126.2 million, a 38.6% increase year over year [9][10] - Cost of revenues increased by 38.5% year over year to US542.4million[10]−Sellingandmarketingexpensesroseby40.9542.4 million [10] - Selling and marketing expenses rose by 40.9% year over year to US208.2 million [10] Cash Flow and Balance Sheet - Net operating cash inflow for the fourth fiscal quarter was approximately US376.8million[14]−AsofMay31,2024,cashandcashequivalentstotaledUS376.8 million [14] - As of May 31, 2024, cash and cash equivalents totaled US1,389.4 million [15] - Deferred revenue increased by 33.1% year over year to US1,780.1million[15]RecentDevelopments−ThecompanycompletedtheacquisitionofEastBuy′sonlineeducationbusinessforRMB1.5billion[6]−AsharerepurchaseprogramwasextendedtoMay31,2025,withapproximately7.3millionADSsrepurchasedforaboutUS1,780.1 million [15] Recent Developments - The company completed the acquisition of East Buy's online education business for RMB1.5 billion [6] - A share repurchase program was extended to May 31, 2025, with approximately 7.3 million ADSs repurchased for about US296.1 million as of July 30, 2024 [7] Outlook - New Oriental expects total net revenues for the first quarter of fiscal year 2025 to be in the range of US1,254.7milliontoUS1,254.7 million to US1,283.5 million, representing a year-over-year increase of 31% to 34% [18]