Intueri triples first-half profit as earnings boosted by acquisitions
By Tina Morrison
Aug. 25 (BusinessDesk) - Intueri Education Group, New Zealand's largest private training company, more than tripled first-half profit as it benefited from its acquisition of a half-share in an Australian online education service and from its purchase of New Zealand education provider Quantum Education Group.
Profit rose to $1.6 million, or 4.21 cents a share, in the six months ended June 30, from $491,000, or 4.67 cents, in the year earlier period, the Auckland-based company said in a statement. Revenue increased 71 percent to $24.4 million.
Intueri, which listed on the New Zealand stock exchange in May, expanded in the first half of its financial year by acquiring a half-stake in Online Courses Australia Group, and the New Zealand-based education provider Quantum Education Group. The company said today it is currently assessing a number of acquisition opportunities, without providing specific details.
"Intueri is well progressed with its integration plans and the full benefits of these will be realised in the 2015 financial year," chief executive Rob Facer said in the statement. "Acquisitions and organic growth opportunities that make a positive contribution to earnings are also being reviewed and we will update the market as appropriate."
In the first half, the company's international unit which delivers tertiary education to international students in New Zealand, and its online unit, which offers tertiary online education to domestic students in Australia, were ahead of expectations. Its domestic business, which provides tertiary education to domestic New Zealand students, was impacted by a softer than anticipated rebound in Christchurch and a later than expected mid-year uplift in domestic revenue, Intueri said.
Revenue from the domestic students rose 85 percent to $12.6 million, international student revenue rose 41 percent to $8.3 million while revenue from its newly acquired stake in the online Australian business added $2.7 million to revenue, the company said.
Intueri said it is on track to meet its prospectus forecast for full-year earnings. Shares in Intueri last traded at $2.90, ahead of their $2.35 initial public offering price in May. The company won't pay a first-half dividend.