• Revenue up 2.4% to $15.3M
• NPAT up 956% to $0.6M
• EBITDA grew 46% to $3.4M

Despite significant cost of living pressures globally and a challenging environment in the US, Kip McGrath Education Centres Ltd reported a 2.4% increase in revenue to $15.3M and a 956% surge in net profit after tax to $0.6M for the first half of FY25. The US market was significantly affected by the election and subsequent Trump administration policies on government spending, which resulted in a 78% drop in revenue for the company's Tutorfly division. However, in the company's primary operations, franchise fees rose by 15.6% and corporate revenue increased by 5%. Earnings improved due to cost-saving initiatives implemented in the prior year, with EBITDA growing 46% to $3.4M driven by reductions in headcount and marketing expenses. The company remains confident that targeted expansion in key areas presents a strong growth opportunity, though challenges persist in the US market. The Board has approved an interim dividend of 0.5 cents per share, fully franked, to be paid on 27 March 2025.

The company anticipates continuing strong performance in its core markets for the full FY25 year, though challenges persist in the US, resulting in an uncertain outcome across that market.

The global tuition market is experiencing some cost-of-living pressures; however, most parents continue to prioritize tutoring within their household budgets. The company's blended delivery model offers the flexibility and convenience that aligns with the needs of modern families.