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.
 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.