G8 Education sees a 20% fall in profit

Company News

by Rachael Jones

G8 Education (ASX:GEM) today announced its results for the half-year ended 30 June 2019 showing net profit after tax (NPAT) reduced 20 per cent on the prior corresponding period to $19 million.

This was impacted by the implementation of the new Accounting Standard Leases Standard.

Revenue of $430.6 million is a 9 per cent increase on the prior corresponding period driven by occupancy, fee growth and acquired centres.

Average like-for-like occupancy grew 1.5 per centage points over the pcp, driven by the implementation of the customer engagement centre, group-specific initiatives and the Child Care Subsidy (‘CCS’) which has improved affordability for families.

Shares in G8 Education (ASX:GEM) are trading 15.69 per cent lower at $2.31.

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.