China Distance Education Reports Strong Financials; Stock Slips 3%
The provider of online professional courses saw 27% revenue growth year-on-year and strong income, but Wall Street investors were left unimpressed.
China Distance Education Holdings Ltd. (NYSE: DL) ended the week in the red despite releasing improved financials for the year through September 2019.
The Beijing provider of online professional education and test preparation courses said in a filing posted after the markets closed Thursday that its revenue in the twelve months through September increased 27% year-over-year to $211.8 million.
Net income attributable was $21.3 million, or 64 cents per American depositary share, compared with $11.6 million, or 35 cents per ADS, in the preceding year, according to the report.
China Distance Education reported sales costs of $104.7 million, up 19% year-over-year, and operating expenses of $87.9 million, at a 33% increase.
In response to the news, DL shares slipped more than 3% Friday, to $8.86 per ADS.
China Distance Learning offers courses in accounting, healthcare, engineering & construction, law and other industries. As of Sep. 30, it had 307 course offerings, approximately 7,300 classes and close to 46,000 hours of audio-video content across 13 subject areas.
The company has been expanding into various industries in recent years. In 2016, it acquired Xiamen NetinNet for simulation-based accounting learning; in 2017 it added Jiangsu Asset to provide advisory services to small- and medium-sized enterprises; and in 2018 the company acquired Beijing Ruida to develop its legal education vertical.