On October 23rd, New Oriental released its financial report for the first quarter of 2025 as of August 31st. According to the financial report, the revenue for the first quarter of fiscal year 2025 increased by 30.5% year-on-year to $1.4354 billion, previously expected to increase by 31% to 34% year-on-year. Among them, excluding the revenue from Dongfang Zhenxuan's self operated products and live streaming e-commerce business, the year-on-year increase was 33.5% to 1.2782 billion US dollars. During the reporting period, New Oriental's net profit increased by 48.4% year-on-year to $245.4 million.
It is understood that this is also the first financial report released by New Oriental after Dong Yuhui announced his independence from Oriental Selection.
Yu Minhong, Executive Chairman of the Board of Directors of New Oriental, stated that "the education new business maintained strong growth momentum in this quarter, with a year-on-year increase of 49.8% in revenue." It is reported that the education new business includes non subject coaching courses, such as story performance, eloquence, handwriting and other literacy courses, as well as programming, art, robotics, science and other literacy courses. Other new educational businesses include intelligent learning systems and devices such as learning machines, smart education, and smart learning solutions.
New Oriental's traditional education business continues to grow. Yu Minhong stated in the financial report that the preparation for overseas exams and overseas consulting services increased by approximately 18.8% and 20.7% year-on-year, respectively. At the same time, the domestic exam preparation business for adults and college students increased by about 30.4% year-on-year.
New Oriental CEO Zhou Chenggang revealed that the newly integrated cultural and tourism business has grown significantly in this fiscal quarter. "We have launched high-quality overseas study tours and domestic study camps for K-12 and college students. In addition, we are also organizing multiple top-level cultural and tourism projects for all age groups (including middle-aged and elderly people) in 30 characteristic provinces in China and internationally. We believe that starting from this fiscal year, this new business will bring meaningful revenue contributions
During the financial conference call, executives from New Oriental revealed that the first quarter of the 2025 fiscal year is during the peak period of summer tourism, with a revenue of approximately 90 million US dollars (equivalent to 640 million yuan) from its cultural and tourism business. "This is just the first year, and we need more time to prove our tourism products and business models. But we have confidence in the development of the tourism industry," they said
For the education business, New Oriental executives revealed during the earnings call that approximately 484000 students enrolled this quarter, with the top 10 cities in China contributing over 60% of the business. Secondly, intelligent learning systems and devices have been adopted in approximately 60 cities, and our intelligent education, business, textbook, and visual intelligent learning solutions continue to contribute revenue to the overall development of the company. In summary, our new education business plan has seen a 50% increase in revenue for this quarter