TAL Announces Unaudited Financial Results for the Second Fiscal Quarter Ended August 31, 2020
By Siyi Zhang
11:29:00, Oct. 26, 2020
TAL Education Group (NYSE: TAL) announced its unaudited financial results for the second quarter of the fiscal year 2021 ended August 31, 2020.
TAL Education Group (NYSE: TAL), a leading K-12 after-school tutoring services provider in China, yesterday announced its unaudited financial results for the second quarter of the fiscal year 2021 ended August 31, 2020.
During the reporting period, the net revenues increased by 20.8% year-over-year to US$1,103.3 million. Loss from operations was US$49.1 million, compared to income from operations of US$60.8 million in the same period of the prior year. Net income attributable to TAL was US$15.0 million, compared to a net loss attributable to TAL of US$23.5 million.
The results show that the increase of net revenues was mainly due to an increase in total student enrollments of normal priced long-term course, which increased by 65.0% to approximately 5,632,210 from approximately 3,413,120 in the same period last year. The increase in total student enrollments of normal priced long-term course was primarily driven by the growth of enrollments in the small class offerings and online courses.
According to Luo Rong, TAL's chief financial officer, the second fiscal quarter's financial results reflected a combination of our online courses' continued strong growth momentum and the lingering pressure on our offline business in this period. "Although the second fiscal quarter was marked by the extended impact of the COVID-19 outbreak, we are encouraged to see that the public health situation and the general economy began to improve in China, and offline teaching and tutoring gradually resumed during the summer months."
Based on our current estimates, total net revenues for the third quarter of the fiscal year 2021 are expected to be between US$1,061.1 million and US$1,094.3 million, representing an increase of 28% to 32% on a year-over-year basis. "Despite the short-term challenges, we stay the course in our online and offline strategy and further development of our quality products, service, and technology to satisfy the ever-changing customer demand and to pursue the long-term success of our business." Said Luo Rong.