G8 Education see profit fall in childcare shake-up

Company News

by Rachael Jones

Childcare services G8 Education (ASX:GEM) released their financial results for the half year ending June 30th 2018.

Their underlying NPAT is $425.6 million down 23.9 per cent from last year’s figure of $33.7 million.

Total revenue was up 7.6 per cent from the last half year results to $396.4 million driven by fee increase, acquisitions and new centre openings.

Underlying EBIT is down 21.2 per cent to $48.1 million.

Successful transition to the new federal funding policy known as Jobs for Families Child Care Package is expected to stimulate demand over time.

The interim dividend for the current reporting period 10.00 cents 100 per cent franked.

Shares in G8 Education (ASX:GEM) is trading 11.98 per cent lower to $2.13.

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