Afya Limited (NASDAQ:AFYA) Q3 2019 Earnings Conference Call - Preliminary Transcript
Dec 02, 2019 • 11:00 am ET
generation has remained very strong , reach an operating cash conversion of (inaudible) of our adjusted EBITDA for the 9 months ended September 30. 84% in the same period in 2018. Finally, we respect to our key operating net in this line number 4, we have reached 1,572 medical seats approved and 624000 medical students enrolled by the end of the third quarter , 15% above the final student base in the first half of 2019.Afya is the leading medical education play in Brazil with a potential to reach a (ph) 11,300 med students consider the seats are ready ultra right. Our average tuition fees in the third
Which (ph) 811,000 had 8% of all the second quarter this year. This increase is in line with our strategy and explained by the mix effect of the new students (inaudible) enrolling with a higher tuition combined with a students graduated with a lower tuition. As regard of the U2, our first quarter CME in medical specialization (inaudible) grew by 12% over the first semester. So you already had strong growth in the first big process concluded after IPO. Now I'll turn this presentation to Luciano Campos, CFO to detail our financial results.
Thank you Virgilio, and good morning everyone. As I will be demonstrating a presentation, Our focus on medical education provides highly predictable growth, strong profitability and cash generation for office invest -- case. Before I get into the details of the quarter, as a reminder, along with our reported figures, we also provide pro forma figures for some key line items.The 2019 pro forma figures give effect to the acquisitions of MedCel , FASA and IPEMED , as if they had occurred in January 1, 2019.
It is also important to remember that our adjusted EBITDA and net income exclude the impact of IFRS 16.
Starting with net revenue on slide number 5, we have provided a breach for our reported figures in 2018 to our third quarter in 9-month results in 2019. Our net revenue in the third quarter of 2019 increased 124% year-over-year to BRL207 million and for this quarter, the reported in pro forma figures are the same. (inaudible) was driven by an increase in medical school enrollments, hardware average, we should see everywhere, the acquisitions of (inaudible) FASA, IPEMED AND MedCel.For the 9-month period, revenue increased a 133% to BRL530 million, in -- on a pro forma basis reached BRl609 million with a contribution of approximately BRL79 million from MedCel FASA and IPEMED.
On slide number 6, we have our net revenue by business unit. Business Unit 1 net revenue of BRL176 million represented 85% of total net revenue of the third quarter and increased 91% year-over-year. The factors driving
Our growth, we served medical school segment (inaudible) remember that, a greenfield medical school takes 6 years to mature every full potential. Second medical tuition fee increase above inflation. And finally acquisitions in the future. Next, business unit 2, net revenues of BRL31