abc learning interim net profit up 62 percent

the age newspaper

ABC Learning interim net profit up 62%

February 19, 2007 - 9:44AM

ABC Learning has reaffirmed its earnings per share guidance saying it will be achieved through continued growth in Australia and New Zealand with stronger earnings from its US and UK operation.

The group reported a 62 per cent jump in interim net profit to $62 million.

The Australian childcare group confirmed its EPS will be 36 cents for the full year and its earnings before interest, tax depreciation and amortisation (EBITDA) will be in excess of $273 million.

"This will be achieved with continued growth in Australia and New Zealand earnings, stronger earnings from the US operations reflecting second half seasonality and acquisitions, and a six month contribution from UK operations," ABC Learning said.

The result for the six months to December 31, 2006 was achieved with a 123 per cent lift in total revenue to $491.1 million which reflected the acquisitions of Kids Campus, Hutchison's Child Care Services and the Children's Courtyard.

ABC now operates 1,465 centres providing care daily in its four markets of Australia, New Zealand, the US and the UK.

EBITDA for the period increased 92 per cent to $134.4 million over the previous corresponding period.

ABC said the overall performance was heightened by the sale of Judius on December 29.

ABC declared a fully franked interim dividend of eights cents per share, compared to seven cents in the same half last year.

ABC said it will acquire and develop 200 centres per year in Australia as well as ramping up its acquisitions in New Zealand.

In the US ABC will do a complete real estate review to determine how best to maximise its existing portfolio and proceed with future school development.

ABC shares last traded at $7.93.