Raffles Education’s revenue dips 13% to S$36m in 2Q12

As the volume of university-going students continues to plunge due to demographic changes.

According to a financial statement, Raffles Education Corporation Limited achieved a revenue of S$36.1 million and a net profit of S$3.9 million respectively for its second quarter FY2012, ended 31 December 2011.

Revenue decreased 13% from FY2011Q2 due mainly to the decrease in PRC revenue caused by lower enrolments in PRC Private Education System institutions as a result of the continuing decline in university-going students due to demographic changes, the increase in the overall acceptance rate into National Education System schools and the increase in PRC students going for overseas studies.

The revenue decline was also due to the absence of contribution by Shaanxi Electronic Information Institute and 50% of Zhongfa College (via Value Vantage Pte Ltd) as the Group had disposed 100% and 50% interests in these investments respectively. This was offset by an increase of 14% in Asia Pacific (Ex-People’s Republic of China “PRC”) revenues.

The Group recorded other operating income of S$12.7 million in FY2012Q2 due mainly to a gain on disposal of available-for-sale financial assets. FY2012Q2 net profit after tax was S$3.9 million, a 15% increase from S$3.5 million in FY2011Q2.