July 16, 2024
One on One Educational Services Limited (ONE)
Unaudited financials for the nine months ended May 31, 2024:
One on One Educational Services Limited (ONE) for the nine months ended May 31, 2024, reported a 7% decrease in Revenues totalling $206.27 million compared to $222.30 million in the corresponding period last year. Revenues for the third quarter had a 38% increase to close at $94.90 million compared to $68.86 million for the comparable quarter of 2023.
Direct Cost amounted to $48.25 million (2023: $38.54 million), this represents an increase of 25% year over year. Consequently, gross profit decreased by 14% to $158.02 million compared to $183.76 million for the nine months ended May 31, 2023. The company booked gross profit of $78.48 million for the third quarter versus $57.08 million reported for the similar quarter of 2023.
Other Income decreased by 90% to close at $1.25 million (2023: $11.87 million), while Administrative Expenses decreased by 1% from $139.65 million in 2023 to $138.23 million in the period under review. Also, selling expenses for the nine months ended May 31, 2024, amounted to $18.31 million, a 32% decrease relative to $26.83 million reported in 2023.
Operating Profit for the nine months ended May 31, 2024, amounted to $2.73 million, a 91% decrease relative to $29.15 million reported in 2023. Operating Profit for the third quarter amounted to $34.72 million (2023: $7.02 million).
Finance costs totalled $11.74 million a 193% increase from the corresponding period last year. (2023: $4.01 million).
Loss Before Taxation for the nine months ended May 31, 2024, amounted to $9.02 million, relative to operating profit of $25.14 million reported in 2023. Profit Before Taxation for the third quarter amounted to $31.54 million (2023: $5.40 million).
Taxation for the nine months ended May 31, 2024, had a 121% increase to reach $8.27 million (2023: $3.74 million). As such, Net Loss being total comprehensive income for the nine months amounted to $17.29 million, a decrease from net profit of $21.39 million reported in 2023. For the third quarter, Net Profit being total comprehensive income was $24.16 million (2023: $3.98 million).
Consequently, Loss Per Share for the nine months amounted to $0.01 (2023: EPS: $0.01), while Earnings Per Share for the quarter totalled $0.01 (2023: EPS: $0.002). The twelve month trailing LPS was $0.04 and the number of shares used in these calculations was 1,900,000,000.
Notably, ONE’s stock price closed the trading period on July 15, 2024, at a price of $1.00.
Balance Sheet Highlights
The company’s assets totalled $628.31 million (2023: $590.42 million). ONE highlighted, “The increase was mainly due to additions to our intangible assets for enhancements done to our learning management system and our property, plant, and equipment for leasehold improvement for additional content studio assembled and equipment acquired. There was a 19.7% reduction in our overall current assets compared to the previous year’s nine months. We have collected 42.4% of our receivables subsequent to the quarter-end. The reduction in current assets was mainly due to a reduction in our cash and bank balances over the previous year due to investment on revenue generating assets.”
Shareholder’s equity was $386.79 million (2023: $463.23 million), representing a book value per share of $0.20 (2023: $0.24).
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