SEGi 2Q net profit falls 5% to RM12m

The group has been able to maintain its strong profitability despite the pandemic in the last couple of years mainly due to lower operating costs and transformation initiatives to manage the challenging time

by S BIRRUNTHA / Pic source: segi.edu.my

SEG International Bhd’s (SEGi) net profit for the second quarter ended June 30, 2022 (2Q22), fell 5.29% to RM11.94 million from RM12.61 million a year earlier, as the higher education industry is still battling the aftermath of Covid-19 pandemic.

The private higher education provider said its quarterly revenue declined 3.83% to RM53.41 million from RM55.54 million previously.  

Earnings per share fell to 0.97 sen from 1.03 sen previously, according to the group’s filing to Bursa Malaysia yesterday.

For the full year, SEGi’s net profit dropped 2.33% to RM20.59 million from RM21.08 in the previous year, while revenue increased to RM108.36 million from RM107.55 million.

According to SEGi, the group has been able to maintain its strong profitability despite the pandemic in the last couple of years mainly due to lower operating costs and transformation initiatives to manage the challenging times.

Looking ahead, SEGi said the volatility of the pandemic continues to limit and restrict business activities including group marketing and foreign student recruitment.

It added that the group has put in place mechanisms to overcome and sustain the overall revenue and profitability in the immediate future.

“The group has identified key strategic areas, particularly in globalisation, digitalisation and diversification to realign our entire learning ecosystem to ensure students’ needs and experiences are continually enabled and enhanced which includes the creation of more digitally related programmes and hybrid delivery of classes,” it noted.

SEGi’s share price closed unchanged at 64 sen yesterday, giving it a market capitalisation of RM803.26 million.

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