Profits jump 57% at China Distance Education Holdings


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China Distance Education Holdings Limited ( DL , quote ) reported 1Q FY12 results on February 28, and business is very good for the leading provider of online professional education in China.

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 2011.

Traders are evidently loving these results because DL is up over 5% in late trading. Rival New Oriental Education ( EDU , quote ) 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 courses."

"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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Stocks

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