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Crizac Revenue Dips Amidst Global Turmoil
3 Nov
Summary
- Second-quarter revenue declined significantly due to geopolitical issues.
- Student deferrals, not cancellations, impacted Q2 financial results.
- Company maintains full-year revenue and profit guidance despite Q2 dip.
Crizac Limited reported a significant decrease in second-quarter revenue for FY27 due to geopolitical instability, currency volatility, and student deferrals impacting its U.K.-focused education business. Operating income fell by 36.7% year-on-year, and profit after tax declined by 23.7%.
Despite the Q2 downturn, management stated that the revenue decrease was largely a timing issue, with students postponing rather than canceling enrollment plans. Applications saw only a minor 3% decline, suggesting sustained demand. The company maintained its FY27 revenue and profit guidance, anticipating a stronger second half.
Crizac continues to invest in technology, including an AI-led platform, and expand its global reach, though the U.K. still accounts for over 90% of its revenue. The company remains debt-free and ended the period with substantial net cash.
Looking ahead, Crizac expects Q3 FY27 revenue to grow by 10-12% year-on-year. Full-year financial performance is projected to be in line with FY26, barring unforeseen external shocks, with an anticipated EBITDA margin of 25-26%.
