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China Distance Education Holdings Limited (NYSE: DL)
Q2 2019 Earnings Call
May sixteen, 2019, eight:00 a.M. ET

Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator

Good evening. Thank you for joining us for the China Distance Education Holdings Limited second area financial yr 2019 profits convention name. On trendy call are Mr. Zhengdong Zhu, Chairman and CEO and Mr. Marostica, Co-CFO. During control’s organized comments, all contributors will be in a listen-best mode. Following management’s prepared comments, we will open the call for questions.

 

Before we start, I remind listeners that this convention call incorporates ahead-looking statements. These statements are made underneath the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995.

The outlook for the third quarter and complete fiscal year 2019, oral statements from control on this name, in addition to the corporation’s strategic and operational plans, mainly the expected blessings of strategic boom tasks, such as the promotion of the business enterprise’s lifelong mastering ecosystem, normal class take a look at prep enrollment increase, cost manipulate, and year over yr improvement of operating margins, amongst different things may also incorporate ahead-looking statements.

Forward searching statements contain inherent dangers and uncertainties. A range of factors could purpose real consequences to vary materially from those contained in any forward-searching announcement. Further information regarding this and other risks is blanketed in the agency’s annual file in Form 20-F and in different documents of the company as filed with the Securities and Exchange Commission. The company does no longer undertake any duty to update any forward-looking statements except as required below relevant law.

As a reminder, this convention call is being recorded. In addition, the presentation we are able to be regarding at some stage in the path of the call may be downloaded from the agency’s investor family members internet site. Further, a webcast of this convention name will also be to be had at the business enterprise’s IR website at ir.Cdeledu.Com.

I will now turn the decision over to Mr. Zhu. Mr. Zhu, please cross ahead.

Zhengdong Zhu — Co-Founder, Chairman of the Board and Chief Executive Officer

[Through Translator] Thank you, all people for becoming a member of our second zone monetary yr 2019 profits conference call. Our working effects had been allotted in advance thru net newswire offerings and also are published on our website, wherein a slide presentation is available as properly.

In the second area of economic 2019, our internet revenue accelerated with the aid of 30.3% year over 12 months to $38.8 million, exceeding the excessive quit of our steerage variety. In what’s normally our seasonally weakest region of the economic yr in terms of sales and profitability. The 2d zone’s higher than expected revenue performance was as a consequence of the sturdy boom of our accounting vertical together with a widespread boom of sales from the sale of studying simulation software program. Revenue from the felony vertical generated with the aid of Beijing Ruida additionally contributed to our 2d region sales boom.

Cash receipts from online path registration grew by 29.8% year over year to $fifty seven million. Second area cash receipts were buoyed via sturdy boom in cash receipts from our market-leading accounting vertical and greater student enrollments in our longer duration top rate and elite lessons.

Total enrollments expanded with the aid of 8.9% year over year in the course of the second one region, due to strong growth in accounting and engineering and production or E&C persevering with training path enrollments.

This yr, we had been a hit in monetizing our longer duration training, which provide our students extra fee-brought offerings which includes closers oversight from our tutors, employment steering services, customized studying reviews, and longer take a look at periods, amongst others. Such top class and elite classes are placed at distinctly higher price points than our everyday training.

While our pivot to better value longer period training has driven sturdy cash receipt boom in receipt quarters, we consider our exceptionally lower charge, shorter duration normal training as well as our loose lessons are critical drivers of accelerated visitors to our course web sites and assist us in addition sell our higher price lessons. And searching ahead to subsequent 12 months’s take a look at education season, that allows you to better serve our students, we have fashioned a crew which is focused on improving our route web sites with enriched content material and progressed website navigation.

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