TAL Education Q1 Profit Declines; Sees Higher Revenues In Q2 - Quick Facts

(RTTNews) - TAL Education Group (XRS), a K-12 after-school tutoring services provider in China, reported Tuesday that its first-quarter attributable net income decreased 30.2% to $13.2 million from $19.0 million last year.

Adjusted attributable net income was $21.6 million, compared to $24.0 million last year.

TAL reported net revenues of $195.1 million, representing a 50.8% increase from $129.4 million a year ago.

The increase was mainly driven total student enrollments, which increased by 56.8% to approximately 646,050.

The company recorded increases of enrollments in the small class offerings and online courses. Average selling price decreased 3.8% to $302 in the first quarter, mainly because of the foreign exchange rate fluctuation.

Looking ahead, based on the Company's current estimates, total net revenues for the second quarter of fiscal year 2017 are expected to be between $247.9 million and $251.3 million, representing an increase of 43% to 45% on a year-over-year basis.

Rong Luo, TAL's Chief Financial Officer, said, "In the coming quarters, we expect our business momentum to continue giving us a strong and positive outlook. We will continue to invest in new initiatives and further advance our global brand building."