Intueri cuts full-year guidance a second time, citing softer Quantum Education sales

Intueri Education Group cut its full-year earnings guidance for a second time.

Intueri Education Group, New Zealand's largest private training college, cut its full-year earnings guidance for a second time, citing weaker sales at its Quantum Education Group division and higher-than-expected costs.

Underlying earnings before interest, tax and amortisation is expected to be $27-29 million in calendar 2015, Auckland-based Intueri said in a statement. It had previously said earnings would be at the lower end of a range of $30-33 million. The reduced guidance wouldn't result in a change in its dividend policy, the company said.

Intueri, which listed on the New Zealand stock exchange in May last year, missed its prospectus forecast for 2014 earnings, with net profit of $4 million compared with a projection of $7.9 million. Revenue from its New Zealand business of $34.5 million was 13% below forecast, while its international revenue was 4% ahead of forecast at $19 million.

Today the company said its performance in the first half "is in line with trends previously stated to the market, with excellent revenue growth in online, strong growth in international and a soft domestic performance." It didn't give specific numbers for the first half.

The company has been acquiring businesses in the past 12 months and last month agreed to buy the NZ Institute of Sport for $19.3 million, including its subsidiary NZ College of Massage, to give it scale in the sports and complementary health sectors. Settlement is expected in October. The acquisitions will help lift annualised revenue to more than $100 million and annualised earnings to more than $30 million, it said.

Intueri will release its first-half results on August 20.

The shares last traded at $1.77 and have dropped 32% this year. They were sold in an initial public offering last year at $2.35 apiece.