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When the powers that be close one door, they often open another. That’s the latest lesson coming from education and training services giant New Oriental Education & Technology Group Inc. (EDU.US; 9901.HK) in its latest quarterly earnings report. The company and many of its peers suffered a sudden loss of much of their business two years ago after China banned private companies from providing most after-school tutoring services for K-12 students. But the country’s loosening of its stiff Covid restrictions starting late last year has fueled a huge jump in demand for study abroad programs, which took a big blow over the past three years during the pandemic. That recovery, combined with similar rebounds in other forms of education not affected by the crackdown, have come as welcome relief to the ailing private education sector. “We continued to make solid progress in all key business lines given a favorable environment of recovery as the pandemic subsides,” New Oriental’s founder and Chairman Yu Minhong said in the company’s latest results released last week for its third fiscal quarter through February.
New Oriental’s revenue for the period rose 22.8% year-over-year to $754 million, well ahead of the 14% to 17% growth it forecast just three months earlier, primarily due to strength for its newer education businesses, as well income from its recently launched livestreaming e-commerce business.