G8 sees occupancy recover in Q2 2022 as impact of Omicron and waivers abate
G8 Education has confirmed that occupancy in the three months to June 2022 has shown a return to normal seasonal patterns as the effects of the various COVID-19 variants on operating conditions abated and the level of gap fee waivers decreased materially in the second quarter, with waivers said to be negligible at present.
Core occupancy for the four weeks ended 17 July 2022 was reported at 72 per cent, in line with the prior corresponding period in 2021 and around 1 per cent behind the same period in 2019, the last full year before COVID-19 commenced.
With respect to the current operating environment G8 highlighted that team member shortages remain the sector’s greatest challenge, exacerbated in CY 2022 by higher levels of sick leave although they continue to mitigate these impacts partially through rostering, and while absenteeism has improved since Q1, it remains a challenge that the team is, to date, managing well.
The Group’s targeted cost reductions remain on track and the Improvement Program (IP) has experienced continued momentum, with approximately 85 per cent of the program completed to date and the remaining centres on track to be completed by early 2023.
G8 also confirmed that Gary Carroll, Managing director and CEO, will be stepping down from his role effective 31 December 2022.
This latest trading statement comes after a particularly challenging period in the first quarter of 2022 as the impact of Omicron and the flooding in Queensland and New South Wales on occupancy, revenue and performance precipitated a warning delivered at G8’s Annual General Meeting (AGM) and the announcement of a new efficiency and cost cutting drive across the Group.
G8 will provide a further update at its Half Year Results on 24 August 2022.
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