Laureate Education, Inc. (NASDAQ:LAUR) Q2 2023 Earnings Call Transcript

Lucas Dai Nagano: Thanks. And also on Mexico, you mentioned that there was a favorable impact for pricing mix. Could you explain again how the mix effect benefited growth?

Rick Buskirk: Sure. So our portfolio in Mexico, you think about it from two dimensions, right. One dimension is we have value brands and we have better price that are about 50% lower than premium brands. And then we also have face-to-face and online, which is similarly 50% discount versus one. And then there’s a third – there’s actually a third dimension, which is what’s really driving it. We have undergraduate pricing, traditional undergraduate pricing, versus online pricing. And what really happened last year in C3, as you recall, we had a very significant successful intake in Mexico in the high teens for our primary intake in Mexico last year. When that intake happened, we had a significant benefit in terms of the mix effect of undergraduates, both in our value brand and our premium brand, particularly in our premium brand and UVM.

And when you have that, the relative weighting of stronger undergraduate, including our premium brand, essentially creates a price mix benefit where we get higher growth of essentially the enrollment growth that you see in the quarter or in the year-to-day spaces.

Lucas Dai Nagano: That’s very clear. Thank you, Rick.

Operator: Thank you. [Operator Instructions]. That concludes our question-and-answer session. Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.