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.