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Kaplan’s first quarter revenues up 14%

publication date: Jun 1, 2008
author/source: Ed Tranham

Kaplan’s first quarter revenues increased 14% to $543.3m and operating income was up 36% to $46.7m. Higher education – Kaplan’s biggest division – grew 19% to $294m for the first quarter of 2008. Enrolments increased 17% to 94,200 at 31 March 2008, compared to 80,500 at 31 March 2007, due primarily to growth of enrolment onto the online programs. To date Kaplan’s HE business has not been significantly affected by the squeeze in the US student loan market, although 9% of the company’s US revenues come from students financed via private loans.

Kaplan’s Test Prep business revenues were flat at $136m principally as a result of the closure of 75 Score! centres in 2007. However, Kaplan's standardised test preparation and English language course offerings saw revenues grow 7%.

Kaplan’s professional division grew 21% to $112m in the first quarter of 2008 largely due to the March 2007 acquisition of EduNeering Holdings, Inc. and the August 2007 acquisition of the education division of Financial Services Institute of Australasia. Excluding revenue from these acquired businesses, professional revenue grew only 2%.

With other business units struggling in the first quarter, Kaplan continues to be the key earnings driver at the Washington Post Company.

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