China’s TAL Education Group (NYSE: TAL) tumbled 4% in trading Thursday to $60.61 per share after the company reported widened losses for the fourth quarter.
The company, one of China's largest education providers, said in a statement today that its revenue reached $1.4 billion in the three months through February, up 59% year-over-year. Net loss hit $169 million compared with $90.1 million in the same period a year ago.
The Beijing-based after-school tutoring provider said its total student enrollments of normal-priced long-term courses grew 44%. The increase was primarily driven by the growth of enrollments in small-class offerings and online courses.
In the fourth quarter, TAL reported the operating costs and expenses were $1.7 billion, representing an 85% increase from $899.3 million a year ago. Selling and marketing expenses increased by 172%, while general and administrative expenses increased by 58%, the company added.
“Our strength in both offline and online education capabilities enabled us to offer tutoring support to our students under the changing circumstances,” Rong Luo, the chief financial officer of TAL, said in today's statement.
Going forward, Luo said the company will keep investing in the quality of its products, service and technology as well as in sustainable marketing efforts. “We will also further diversify our products, content and service while improving operational efficiency to meet our students and parents evolving needs at affordable prices,” Luo added.
TAL expects to generate revenues of $1.3 billion to $1.32 billion in the first quarter, representing an increase of 43% to 45% year-over-year.