EDU Holdings FY23 Financial Results

EDU Holdings Limited (ASX: $EDU) has reported a 22% increase in revenue to $21.6m for the year ended 31 December 2023. The company's EBITDA returned to a positive $0.5m, marking a material $1.8m improvement to the net loss after tax of $3.0m. Ikon, the higher education provider, experienced a 47% increase in revenue, driven by strong growth in international enrolments, while ALG, the vocational education provider, saw a return to growth in enrolments during the year.

CEO Adam Davis on FY23 Performance and Outlook

It's pleasing to see Ikon delivering operating leverage, recording a $1.2m improvement to net profit after tax on $3.7m of additional revenue. We expect a similar thematic in ALG as student numbers rebuild. The Group retains material latent capacity to support higher student enrolments in both businesses, without a material step-up in operating expenses. We're off to a strong start in FY24, with a sharp increase in Ikon enrolments and continued enrolment growth in ALG.

Summary of FY23 Results and Outlook

EDU Holdings has demonstrated strong financial performance in FY23, with a significant increase in revenue and a return to positive EBITDA. The company's higher education provider, Ikon, experienced substantial growth in international enrolments and operating leverage, resulting in a 47% increase in revenue. ALG, the vocational education provider, also saw a return to growth in enrolments, with the expectation of similar operating leverage as student numbers rebuild. With material latent capacity to support higher student enrolments in both businesses, EDU Holdings is optimistic about the outlook for FY24. The company remains well-positioned as a low-risk, high-quality provider offering courses aligned to occupations with long-term skills shortages.