November 10, 2017 / 11:43 AM / a year ago

UPDATE 1-Brazil's Kroton reports net income of 451 mln reais, below consensus

(Adds details on revenue, enrollment; adds context)

SAO PAULO, Nov 10 (Reuters) - Kroton Educacional SA , Brazil’s largest for-profit education company, on Friday reported a rise in third-quarter net income on strong revenue despite adverse macroeconomic conditions.

Kroton posted net income of 450.8 million reais ($139 million), up 22.4 percent from a year earlier, according to a securities filing.

Profit missed an average estimate of 504 million reais in a Thomson Reuters survey of analysts. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 10.7 percent to 544.3 million reais, but was also below an average estimate of 584 million reais.

Kroton said despite Brazil’s challenging economic conditions, its net revenue rose by 8.1 percent in the quarter, to 1.3 billion reais.

The result reflects the company’s ability to attract new students and retain existing ones, a better product mix and the positive effects of a program allowing tuitions to be paid in installments, according to the statement.

Still, Kroton ended the quarter with 937,167 students, representing a 1.7 percent drop from the third quarter a year ago, the statement said.

“The processes of enrolling and re-enrolling pupils in the middle of the year yielded satisfactory results even in the face of high unemployment and modest economic growth,” Kroton said.

$1 = 3.2520 reais Reporting by Ana Mano; Editing by Susan Fenton and David Evans

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