BRASILIA (Reuters) - Brazilian education company Yduqs (YDUQ3.SA) reported late on Thursday a 30% drop in first-quarter net income to 168 million reais ($29 million), partly because of increased costs and expenses due to anti-coronavirus measures.
Earnings before interest, taxes, depreciation and amortization (Ebitda) fell 12.2% to 337.7 million reais, with the Ebitda margin falling to 36.6% from 41.2% a year earlier, the company said.
“The ... increase in costs and expenses, largely a result of contingency measures related to Covid-19, the increase in defaults and higher advertising expenses in line with greater funding efforts, contributed negatively to Ebitda in the first quarter of 2020,” the company said in a statement.
General and administrative expenses rose 19.6% on the year to 154.3 million reais, while commercial expenses rose 15% to 179.6 million reais.
Reporting by Paula Arend Laier; Writing by Jamie McGeever; Editing by Nick Zieminski