3P Learning (ASX:3PL) Announces FY25 Half Year Results
Financial Performance
3P Learning reported revenue of $52.7 million for the half year ended 31 December 2024, a decrease of $1.2 million compared to the prior corresponding period. Underlying EBITDA increased by 98% to $6.8 million, and the statutory net loss after tax improved to $0.7 million from $12.0 million in the previous period. No dividend has been declared.
Future Outlook
The company expects its underlying EBITDA and cash generation to strengthen in the second half of FY25 due to ongoing efforts to simplify and enhance operational efficiency. 3P Learning focuses on continued improvement and better returns for shareholders.
Executive Comments
CEO Jose Palmero stated, “Revenue for the first half was 2% lower than pcp. This was mainly due to the transition of Reading Eggs customers from Edmentum in the US-schools market. Annual Recurring Revenue was 4% higher than June 2024 which includes the acquisition of LiteracyPlanet that closed on January 3, 2025. Our B2C business delivered 1% Billings growth despite significant cost of living pressures for parents.”
Palmero added, “Our cost management initiatives delivered a substantial improvement in underlying EBITDA, which was $6.8m, a 98% increase on pcp. Underlying cashflow was $1.4m vs ($2.4m) in pcp, which was an improvement of $3.8m.”
Executive Chairman, Matthew Sandblom, said, “FY25 has been a year of transition with the introduction of the 3 Essentials and we have passed the peak of our large investment in new and existing products. We have seen some good early signs from the 3 Essentials with its compelling value and ease of use for customers and expect to see a greater impact in FY26.”
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