TAL Education Group, the Beijing-based after-school tuition provider, has reported net income of $15 million for the second quarter of its 2021 fiscal year, ending 31 August 2020. This compares with a net loss of $23.5 million reported for the second quarter of fiscal year 2020.
Net revenue for the quarter was $1.1 billion, up 20.8% from $913.2 million announced for the second quarter of fiscal year 2020.
The company also reported results for the first six months of its 2021 fiscal year ending 31 August 2020. Net income for the period was $96.6 million, compared to a net loss of $39.7 million reported for the first six months of fiscal year 2020. Net revenue for the six-month period was $2.01 billion, up 26.9% on the $1.59 billion reported for the same period in the previous fiscal year.
Year-to-date, TALs share price is up more than 40%, and traded at $70.31 on 23 October.
TAL’s chief financial officer Rong Luo said: “TAL’s financial results of the second fiscal quarter reflected a combination of the continued strong growth momentum of our online courses and the lingering pressure on our offline business in this period.
“Although the second fiscal quarter was marked by the extended impact of the Covid-19 outbreak, we are encouraged to see that the public health situation and general economy began to improve in China, and offline teaching and tutoring gradually resumed during the summer months.
“We will strictly adhere to all relevant government policies and regulations regarding national public health and remain fully committed to the protection of our students and employees. We will continue to be well prepared to flexibly serve our students and parents with diversified educational support.
“Despite the short-term challenges, we stay the course in our online and offline strategy and further development of our quality products, service and technology to satisfy the ever-changing customer demand and to pursue long-term success of our business.”
Date published: 26 October 2020