China Distance Education Holdings Limited (
) reported 1Q FY12 results on February 28, and business is very
good for the leading provider of online professional education in
Total course enrollments from continuing operations were 828,000,
an increase of 62.1% from the first quarter of fiscal
2011. Net revenue from continuing operations increased 35.8%
to $9.9 million.
Gross profit from continuing operations increased 57.3% to
$5.3 million, while net income was $0.4 million, compared to net
loss of $1.0 million in the first quarter of fiscal
Traders are evidently loving these results because DL is up
over 5% in late trading. Rival New Oriental Education (
) is up almost 1% in sympathy.
Commenting on the results, CDEL Chairman and Chief Executive
Officer Zhengdong Zhu said, "Despite the first quarter being
our seasonally lowest quarter of the year, we delivered
enrollment growth across our online education courses and average
student payment growth for most of our online test preparation
"In addition, we have seen increasing contribution from our
newer initiatives, demonstrating that our investment in new
courses and services is beginning to pay dividends."
Zhu cited mobile learning platforms, magazines and online
high-definition courses as competitive advantages and "a real
value add to our students."
CDEL was founded in 2000 with a focus on online professional
education. It now offers 16 websites on 13 subjects, 174 courses,
2,000 classes and 10,000 hours of course content.