SEG International Bhd (SEGi) saw a significant 80% drop in net profit for the second quarter ended June 30, 2023 (2Q23), with figures falling from RM11.94 million to RM2.39 million compared to the same period last year.
The private tertiary education provider attributes the decline to elevated expenses and finance costs, which have further impacted a decrease in gross profit.
The company’s quarterly revenue dipped by 11.08% to RM47.49 million, down from RM53.41 million in the corresponding period in the previous year.
SEGi explained that the drop in both revenue and profits was primarily attributed to the sizeable graduation of postgraduate foreign students from SEGi institutions in previous financial years.
Contributing to the higher costs were an increase in the depreciation of right-of-use assets and lease interest expenses, which stemmed from new lease terms for specific campus buildings.
Comparing the data with the first quarter of the same fiscal year (1Q23), net profit witnessed a 47.98% decrease from RM4.6 million, while revenue slightly increased by 3.25% from RM46 million.
SEGi Q2 net profit plunges 80% amid higher costs and lower gross profit
SEG International Bhd (SEGi) saw a significant 80% drop in net profit for the second quarter ended June 30, 2023 (2Q23), with figures falling from RM11.94 million to RM2.39 million compared to the same period last year.
The private tertiary education provider attributes the decline to elevated expenses and finance costs, which have further impacted a decrease in gross profit.
The company’s quarterly revenue dipped by 11.08% to RM47.49 million, down from RM53.41 million in the corresponding period in the previous year.
SEGi explained that the drop in both revenue and profits was primarily attributed to the sizeable graduation of postgraduate foreign students from SEGi institutions in previous financial years.
Contributing to the higher costs were an increase in the depreciation of right-of-use assets and lease interest expenses, which stemmed from new lease terms for specific campus buildings.
Comparing the data with the first quarter of the same fiscal year (1Q23), net profit witnessed a 47.98% decrease from RM4.6 million, while revenue slightly increased by 3.25% from RM46 million.
The increase was driven by new student enrolments for the second half of 2023 (2H23).
For the first half ended June 30, 2023 (1H23), the company’s net profit fell by 66% to RM6.99 million, down from RM20.59 million during the same period in the previous year (1HFY2022).
Meanwhile, revenue dropped by 13.72% to RM93.49 million, as compared to RM108.36 million.
Despite these challenges, SEGi remains positive about its future prospects.
SEGi’s shares closed unchanged at 65.5 sen today, maintaining the group’s valuation at RM822.78 million. –TMR