Ambow Education Announces Increase in Revenue, Income
Ambow Education Holding Ltd. (NYSE American: AMBO), a provider of education and training services in China, said today its revenue in the fourth quarter of 2018 increased nearly 11 percent to $24.6 million from $22.2 million a year earlier.
The Beijing-based company said net income attributable to ordinary shareholders in the three months was $4.5 million, or 10 cents per fully diluted American depositary share, compared with $3.3 million, or 8 cents per fully diluted ADS, the year before.
"We are pleased to report a solid fourth quarter; with year-over-year revenue growth across our two primary business segments, Better Schools and Better Jobs, up 12.8 percent and 38.3 percent, respectively," said Jin Huang, Ambow's president and chief executive officer. "With higher enrollments to be expected across all business segments in 2019, we will remain focused on managing costs and improving margins to boost operational efficiency and generate greater overall profitability."
Shares in the company, which announced earnings after the market closed in New York, ended the day down more than 3 percent at $6.24 per share.
Ambow said the increase in revenue was due primarily to higher student enrollment for the current academic year at its K-12 schools and from additional revenue from Bay State College. Ambow bought the Boston college in November 2017.
While revenue and income both increased, the company said that gross profit for the three months slid to $8.3 million from $9.8 million the year earlier as its gross profit margin was 33.7 percent in the latest fourth quarter, down from 44.1 percent a year earlier. The decrease was primarily attributed to lower profit margin at Bay State College, where Ambow is currently consolidating business operations, it said.
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