SINGAPORE (May 14): MindChamps Preschool Limited announced earnings of $0.4 million for 1Q19, rising 23% from $0.3 million a year ago on higher revenue.
Revenue for 1Q grew 66% on-year to $10 million from $6 million previously – mainly due to a higher number of enrolled students from acquired preschool centres, which resulted in an increase in income from school fees.
Higher non-recurring franchise income and royalty income from the addition of franchisee-owned franchisee-operated centres (FOFOs) also helped to contribute to the group’s topline growth for the quarter.
Cost of sales grew 84% y-o-y to $4.8 million from $2.6 million on the back of higher academic staff costs from increased academic staff headcount from the acquired preschool centres.
Operating administrative expenses grew 47% to $5.1 million from $3.5 million a year ago due to higher administrative costs on the newly-acquired centres, as well as higher staff costs from increased staff to support the group’s business expansion overseas.
As at end-March, MindChamps has 18 company-owned company-operated centres (COCOs) and 56 FOFOs globally, up from 11 COCOs and 51 FOFOs a year ago.
See also: Trump wins Republican nomination, setting up rematch with Biden
“As our research began 20 years ago in Australia, our focus on expanding into Australia aligns perfectly with our vision of bringing our 3-Mind education model from Singapore to the world. We are excited that with 20 early learning centres already operating in Australia and further expansion planned, we are poised to bring the benefits of our unique approach to many more children in Australia,” says the group’s founder, CEO and executive chairman, David Chiem.
Shares in MindChamps closed 2 cents lower at 66 cents on Monday.
