Raffles Education's FY16 net profit slips 7%

A FALL in revenue and share of results of joint ventures eroded earnings for Raffles Education Corporation in its 2016 financial year.

Net profit fell 7 per cent to S$15.8 million from the year-ago period, the group said in a Singapore Exchange filing on Wednesday evening.

For the 12 months ended June 30, revenue sank 7 per cent to S$111.0 million from the year-ago period. The drop in revenue was due to a discontinuation of its Raffles Shanghai joint venture college and a reduction in foreign student intake in Sydney, it said.

Full-year earnings per share dipped to 1.63 Singapore cents from 1.68 Singapore cents in the preceding year.

The group said unfavourable macroeconomic conditions in the world, currency volatility and uncertain global interest rate movements are creating new challenges.

It is also facing increasing competition, higher manpower costs and a more stringent regulatory environment, all of which are expected to have an adverse impact on its operations.