Good afternoon, ladies and gentlemen. Welcome to Yduqs video conference to discuss the results for the first quarter of 2022. This video conference is being recorded and the replay will be available at the company's website at www.yduqs.com.br. The presentation will also be available for download. We would like to inform you that all attendees will only be watching the video conference during the presentation. Then we will start the question and answer section and further instructions will be provided. Before proceeding, we would like to clarify that any statements that may be made during this conference call regarding the company's business prospects, operational and financial projections and goals are beliefs and assumptions of Yduqs' executive board and the current information available to the company.
These statements may involve risks and uncertainties as they relate to future events, and are subject to certain circumstances that may or may not occur. Investors, analysts, and journalists should be aware that events related to the macroeconomic scenario with industry and other factors may cause results to differ materially from those expressed in the respective forward-looking statements. Present at this video conference, we have Mr. Eduardo Parente, CEO of Yduqs, and Mr. Rossano Marques Leandro, CFO and Investor Relations Officer. I would like to hand the floor over to Mr. Eduardo Parente to begin the presentation. Please, Mr. Eduardo, you may proceed.
Thank you very much. Morning to all. We had this English session on the previous quarter. Despite the fact that 2,000 or 3,000 people showed up, the feedback that we got was very good in the sense that you always lose something in translation, and it's a way to understand better and in a better way or even on the slower path what's going on here. So we decided to repeat. Please like it. Let us know. Our investor relations team will help us make sure that this is the right thing to keep on doing in the future. I'm Eduardo Parente. I'm the CEO of Yduqs. I'm here to present the first quarter results. We have a first quarter, that's the page here, showing that we're very satisfied with it.
For people who followed us for some time now, we have two high-growth businesses, which are distance learning and the premium business. These businesses have been doing very well and growing double digits, always at least four or three in the beginning. For a long time now, even during the pandemic, the business was very high and the growth was there. We're always discussing the EAD on campus, what was the future, the concerns. It was always either shrinking or maintaining levels. I think what we're showing you here this morning is just a clear sign of recovery on the on-campus and the other levels delivering as they have in the past years. Just to illustrate some numbers on the recovery, there was a huge evolution of the intake. People coming back to classes. The base of the student base is resuming growth.
When we see the graph, the expenses are also growing, and we keep on focusing on cost reduction and the cost, which is the highest that we have over revenue, also reducing an important amount of few percentage points. That is a lot due to the lots of investments that we have been doing in the past years in terms of digitalization and making sure that we move on and evolve with the quality of the student experience. But at the end, we are using digital content as much as we can to complement the on-campus experience.
Under the group levels, they are delivering as usual, 44% growth versus one year ago. These are including student base, 20% growth in that revenue, more than that. About 200 medical seats approved. This is important. These seats, they grow upon government authorization. There are some prerequisites for these authorizations. These authorizations are planned.
They are not out of the blue things. These are things that there is a mathematical account for that. This is going pretty much as planned. So when we look at our medical seats, we always only communicate the ones we already have. We communicate projections as well. Some people communicate projections as compared to these seats. We prefer to verify them before we talk about them. We have another 228 seats added to our portfolio early this year, which is very good news. These seats, when you sell a medical school, you usually sell them at BRL 2 million- BRL 2.5 million per seat. So these seats alone would add another BRL 500 million in our market cap. I am not sure. It is not reflected on the valuation still. The growth of additional centers, this is pretty important. We have evolved into a model which is very lean.
I have a big even study to the students alone. This lean model is very efficient to evolve to the countryside, which is something that our competitors are not able to do as efficiently as we are because they are giving much higher than ours. Their costs in terms of much bigger and heavy and also personnel heavy. So this growth to the countryside is very important for us because we have been doing this for a while. There is a lot of competition on the big cities, and this competition tends to push its prices down. When you go to the countryside, we are pretty much alone out there. So we think this is being very successful for us. On the right-hand side of the page, we have the cost optimization here. We have evolved in a market, it says expenses. Not that we have evolved very much.
We are pretty much coming back to what we have been before and where we should be. Reference in Q1 2021 was, we started a campaign that did not go well. We had to change it. A lot of money spent on there, and so we are very transparent about that here. It goes from happy years going back to the regular expenditures that we have. The personnel costs, people are concerned that us coming back full on site now that we will have an impact on costs.
No, on the contrary, we have been able to reduce personnel costs, which is a little bit due to the fact that during the pandemic we communicated no recurrence costs in terms of revenue spend of costs. So there were some phases that we had during the pandemic because of people not going to site or closing deals. We communicated some principles directions, things like that.
We paid our fair share. You see utilization is high here. We were pretty successful in renegotiating some adjustment factors, but also on optimizing physical space, not only shutting down a few campuses but also shrinking some of the campuses that we have, fewer people. All in all, that resulted in an inflationary environment, a reduction in these expenses over the actual. Actuals were a little higher, but when it comes over net revenue, that was the reduction. On the far right-hand side, we have the results. Pretty big increase in adjusted EBITDA, change in net income. We feel very healthy in terms of cash and cash equivalents and the debt ratio. What is very important here is, in fact, I will repeat this at the end because I think the key message here is that we had a very good, a very exciting first quarter.
I need you to understand this, which had a bad comparison basis over last year. You should not replicate this number for the other quarters that we have for this year. It was good. It was something that we are very proud and very happy about. Second quarter last year was a fantastic second quarter because last year we posted a lot of intakes from first quarter to second quarter. So the base of comparison is much stronger. The second quarter, we are likely to have a second quarter similar to what we had last year, which again, is a very good number. But very good, containing excitement. We have some ripples ahead of us.
On the other hand, what I think is pretty clear now, we are paying, I do not know, depending on the multiple of the results, if you add it in the year, last year, next year, whatever, it is 4 points or 5 points to EBITDA, or perhaps 6 points, which is pretty much half of what we had in the past. I think this is okay, not only to us, but to the sector. Very good quarter. You should be happy about it. We are happy about it. Do not get overexcited. Again, it is a clear demonstration that most of the paying up is not where we should be now. Jose can help me with the next page. This is an evolution. We do not have these institutes that evaluate market share on a day-to-day basis like consumer goods or retail sectors have.
We have the net, which is pretty much delayed information. Again, it is information that we have, and I think that you will subsequently use the 2020 information. On the left-hand side, we see the on-campus business. I think this, besides the message that we gain in market share, and I think that if we move this on to 2021 and 2022, it is going to be even bigger number. We are coming from 7%- 9% of the enrollments and 11% of the intake, which is a second underlying message here on the left-hand side, is it is pretty reduced consolidation on the on-campus business. This is something right now we see as somewhat expensive decisions to be made. I think that in order to acquire someone now, it is merge.
It needs to be either someone that is on the values, which is pretty much all the listed companies, or someone that has a very special business, either payment side or something tech-related. All in all, what we see here is a business facilitation, which right now with the current interest rates that we are paying, we are looking to, we like to make positions that have synergies decrease 5x or 6x EBITDA. And we only consider cost synergies.
But the two years that would take to get to these 5x to 6x of EBITDA, just looking at the interest rates that we are paying. We have had a list of business for us we have done in the last semester, the end of last year. We have to reassess all of them and pretty much, start from scratch from the negotiations. At some point it has to happen.
We see a lot of companies here that are barely making break even, and the local foundation level, in fact. The right-hand side is a different segment, and a big evolution on the intake from 9%- 16% for market share, intake from 8%- 15%, price almost, high-growth segment, more consolidation on this segment. And we think that these market share gains have to be even higher when we take a look at the 2021 figures, which will take a little while for the segment to announce. Okay. Moving on to page five, what we have here, these were guidances that we gave about intakes and pricing. When we consider the premium segments, we have said that we would One thing that is important, of course, for newcomers to the sector. Premium and on-campus they have semester intakes, and while the digital learning every quarter you have intakes here.
It is very different ways to think about the business and the numbers that are presented here. Premium, we usually get together 16% of increase in intake. On the quarter, it was 31%, the right way to look at this is 24%, which was the semester number. So 24% is going after the month for the first day. And we just have to look at who came in early April, which is when we finished this intake. On the average ticket, we talked about 0%- 5% increase. We had a very good lead cycle. Big timers, unlike on the on-campus, big timers sometimes pay more for medicine and internet. That is what happened. So we were able to be way above the guidance that we gave. Okay. I am going to go for right-hand side first, which is on-campus, which is the same semester way to think about.
So we give it as between 30%- 50% increase. The actual increase on the quarter was 59%. The right way to think about this was a 39% year-over-year increase, including the ones that entered early April there. On the pricing, we gave a guidance between 0% and -5%. We have a -6%. The reason for that is, we have a product called GIS, which is a way to finance the first installments of the new students. What happens there is that he pays a little bit in the first installment, and the difference between that and the full price, he gets financed for the remaining of his course. We account for the revenues on the spot. Fewer people decided to take this opportunity to finance the first installment.
What happens is instead of recognizing revenue of BRL 1,200 that will become cash over the length of his K here, we recognize a number much lower than that. That will not affect his seventh month on. It is just a way to finance, and because fewer people chose to use financing, we had an impact on the revenue divided by the number of people, which ended up being the average ticket. Had people adhered to this program the same level that they had last year, our ticket prices would have been flat.
We contracted with the people coming in. Remember, this is a huge intake. Roughly a third of the base is newcomers. Had they had a serious commitment to the same, we are looking to the seventh month on, we are looking to numbers flattish versus the previous year. On to the middle of the page, we are talking about. No.
Middle of the page, talking about digital learning. Again, this is a quarterly intake. We expected between 15% and 60% growth. We had 68%. Be careful with this number, because, again, last year we had a lot of people, because between paying the bill and not having to pay, there was a lot of people who were postponed or pushed as of February 15. Somebody showed up here on February 26, we said, "Okay, you are enrolled, but you start April 1st" There was a lot of movement from people from the first quarter to the second quarter. We wrote down here the way to think, in terms of what is happening to this market is, if we thought about this in a semester basis, we would be looking for 15%- 60% growth, which is a very good growth. And we are happy and proud of it.
Good to know again that we fulfill the guidance here. Regarding pricing, remember that we had a fantastic intake in the second quarter last year. These people now, it has been one year, that is a full 12 months. It is a year. This is when we are allowed to increase them. The increases that we have for this one is about 13%. We have a lot of people who joined the second, third, and fourth quarter last year and first quarter of this year that have not taken classes and paid yet. When we see the regular situation, something much closer to flattish than what we have. Okay. Moving on to the next page, we had the biggest intake of our life. I think we said there are a couple of things that we have to credit that.
One is, we are going to talk about it a little bit on the next page. We think a lot the experience of the people here, not only in terms of academic side, but also how they interact digitally and how they study and how they engage with us. But also, we have invested a lot of money both in the digital side. Today, a year or some people it takes them two weeks, three days here to enroll here. Today, that is taking less than 15 minutes. More than half of the people have a full digital process. You do not talk to anyone. There is just a PC test. You take a picture. Everything is computer-based. This is extremely helpful in making sure that the people join us.
When they left, when we see the competition, they are far behind a very manual process, very low margin, very lengthy as well. Not clear path on how to do this. On the right-hand side is our investment in image. We had a campaign, very strong media, very big reaction from the public. You see these people here, Anitta and Neymar Jr., number one certified globally for a couple weeks. Juliette is a winner of "Big Brother" two seasons ago. Both of them I know are strong women that a lot of Brazilians, humble backgrounds, they are very successful. A lot of people, the class of C and D students that we attend to, they lo ok up to her, they want to be like them, this huge success. We changed every brand in medicine from [Spartacus] to IDOMED, so very big impact as well.
Result of that, thanks to John and everybody at Ibmec and some of our friends, all in all, the things we have is, if you look at Google, we have 44% share of interest in the educational spectrum in Brazil. We are number one, two points to three points ahead of second place. Talking about the next phase of the student. We have now a fully developed app. For some time this year, that seemingly does everything on the app. You will pay his invoices on the app. You will select the classes for next semester on the app. You will attend classes on the app as well. You will exchange information with his professor on the app. You will exchange his work. He will upload a spreadsheet on the bid, and he will get counted as a class on the app. We have developed our own system for this.
We have realized, A, we were able to develop something much leaner and efficient to our students than the regular suppliers have. We think that this became a competitive advantage for us. When we had an internal supplier, we developed things with them that ended up being used for the entire market and supplier had an advantage over others as well. Now we have worked on all the external suppliers, and we are not only operating cheaper, but I think those competitors, how we add new features and change things and correct things is great, and I think it became a key competitive advantage for us. The app is rated at 4.6 at Play Store. We have 750,000 active students on the app monthly, so it is not something that it is there and people use it once in a while. It is day-to-day use.
We are shifting people from using computers into the app. So 35% of the active classes is done through the app. We are starting phase two of Infinity. So phase one was changing the format of the classes, making something way more interesting, engaging, and academically more efficient. Phase two now is to make it very lean and fast to upload and allowing people to study on the bus in real-time, so it is a real big step for us. That graded on the app score that I mentioned to you on page four, it increased a lot since we have changed it to phase two. Okay. Moving on to the financial numbers on the previous segment.
We added this quarter numbers since 2018, because I think the section for people that have not been following the case well, which is a good chunk of the people when COVID pandemic went away and started to bring their phones again. I think it's pretty impressive, the growth that we had, and bear in mind that most of this is organic. When we look at the green side, we're talking about medicine. The gray side is Ibmec. Ibmec, a higher-end digital school that we have, that we bought in mid-2020. When you see the BRL 69 million- BRL 206 million, now the three quarters increase over these five years. That's pretty much organic, and this is massive. Same applies in the bottom for the student base. Not to say this entire organic and this acquisition came a few hundred students.
When we see some of our competitors growing, paying BRL 2.5 million per seat, this is not what happened. What we paid for most of those was BRL 600,000 per seat. These are still young schools. They're still growing, so they're not a big contribution to the base yet, but most of what we see here is organic. This is the growth that is pretty much predicted. We can tell you what's going to be this year. We're going to tell you what's going to be next year. What you see there in medicine, a 14% increase on the base. On the bottom, you see a 29% increase in revenues. You see that total premium segment, a 25% increase in the revenues. A result of that is an increase in EBITDA levels.
People who have been following us will remember that first quarter last year, we said that the results from the senior were abnormal. We even gave a guidance to the second quarter or to the semester as a whole. This 53 percentage margins should have looked more like a 49 p ercentage margins, they're still the same as to last year. As I mentioned before, we were able to increase prices in a relevant manner here, percentage. Seasonal. Actually, we brought all the numbers back to 2018. This is 100% organic growth. The gain on the bottom is the undergraduate and this is lifelong. You'll see that from 98- 317, and of course it's now one, two, three, four years. I think supreme tested growth, especially marginal political investment included in this. On the bottom, you see the same for U.K. students.
This is still growing. People always asking us when it will stop to grow. We do not see this happening anytime soon. We see that the pace of people's high school diploma without a high school diploma is increasing. We graduate fewer people than high schools do. We see this growth still for quite some time. We see an impressive increase in pace of 45%. It increases revenues in 37%. On the blue side, which is the lifelong we had at that time during COVID. These are shorter term courses, so if people don't enroll, the effect on the page is pretty fast. We are working hard on finding the digital solution for this platform. We are a big lifelong player. Lots of it still analogic. Still working hard and having some important investments in creating a digital platform for that.
For most people, we think that is going to give us a lot of fruit and good results. Gray on the bottom of student base is keeping closer to the position that we made last year. We are not here in 202 1, the one that before we separately the student base. The courses for the one not following closely is a platform for short-term courses on preparation for public contests. Very low frequency, very high volume, have very high intensive traffic.
The people that, much younger than I am, fantastic creativity and digital knowledge and time field that is helping us a lot, not only with the evolution for proposal, which in itself is financially sustainable and the very interesting numbers in terms of growth and cash flow generation, but also can help us become more digital as Yduqs as a whole. The return on the right-hand side of the page.
We have an interesting growth again, 35% versus last year. The margins took flat despite the fact that we have a 5 percentage point increase in that key here. The reason for that is, as I mentioned before, that intake, instead of being first semester, became per quarter. What you have is people enrolling in the first semester. The use, if you cannot renew in the middle of the year, you became 100% provision on the even quarter. People enrolled in January, they did not renew in July. They become fully provisioned in October and November. Once you move that three months, you have a group of people which are not small, because as I mentioned, the intake on the second quarter last year was huge.
What we have is that the people that joined in April last year, they did not renew in October. The people that did not renew in October became fully proficient in the first quarter. That huge percentage point increase of 5 percentage point in the headset score for this family is as a matter of adjusting from everything or the even quarters to everything now in all the quarters. What we are just going to see with time is a soften of these curves of paid traffic along these quarters. This is the first big hit. Despite the fact that we have this, we are able to sustain the completed margin, which was pretty good. On the bottom here, you see the growth that we are getting in the undergraduate student base by the campus center.
The growth is coming majority from partners, which is why we have the lowest margin. Reason for that is that we have to pay 30% commission on the partners and we have our own distance learning centers, which is zero. You can see by the figure, you can add it that we own our own as well. But the partners are becoming more and more important. Key thing here, which is very important, is that when you see the additional students we get from the partners, their average margin is bigger than my average margin as a whole. The next thing. When you have an additional student from a partner, you have another 10% commission that you have to pay, another 10% that on bad debt and another ish on marketing.
We're talking about roughly 45%, 50%, 55% margin on the additional students, which is higher than our average of 38%. The operational leverage of this business is huge and more than enough to sustain the reduction that we have on the margin of the additional students. Notwithstanding that, we have partners growth in the past coming mostly from the countryside, where generally the prices are higher. On the right-hand side, you can see the average ticket for the ones following me. For some time now, you'll be familiar that I'm saying always that the ticket score, this is when it will fall. I think what you see here on the 6% perhaps doesn't reflect the reality. What we have here is that we have a massive amount of people joining us.
As I said, as of second, third, and fourth quarter last year, we cannot increase fee by-law before they complete a full year here. There's a massive amount of number that you can't receive, people that did not receive a 14% increase that we apply to the people that have been here for more than a year. These trends for prices to go down further, perhaps not as fast. We're seeing some more rational behavior both in distance learning and on-site, as this intake season now is going on. We like that to see some improvement as those numbers on the cost. The on-site, we split this in two parts because there's a lot of news here, and everything in one chart is too much to digest. At the top of this page, we see the evolution of the intake since 2018.
It's a big evolution since last year. This 101,000 students who joined us in this first half is a number in ballpark to close what we have pre-pandemic. We think that this number is small. We would like to have it bigger. The reason for that is when you compare it to pre-pandemic levels, we did not have Athenas by then. We bought an independent group of schools in 2020. If you have apples to apples, we should have, to be compared to pre-pandemic levels, number closer to 130 or so. Good news there is that we think there's a lot of space to grow. I think there's still an economic challenging situation for us. The numbers that we're getting here, odd numbers, it's still in economic crisis mode.
We believe there's a substantial upside to this business still, and that we're going to have intakes better than this year after year, as we go back into normal economic conditions. On the bottom left-hand side of this page, we have the number of students on campus. We left off before pandemic with 3,600 students on campus. We made acquisition. We had 15 additional campuses. We shut down seven. Most of them are campuses, not in the acquisition. We're still optimizing that. We reached on first quarter, now the pre-pandemic levels of students on campus. This number is evolving well, and we're excited to have numbers to those 2017 levels, which are the FIES numbers, or even 2016, which were high threes and perhaps low fours on the occupation capacity.
What is happening here, you see a lot of additional students, additional revenue coming in without additional costs or without relevant additional costs because we have the added capacity to absorb this. On technology cost, again, we have been investing a lot in IT, a lot in systems. When I say systems, it is the software that you see, the apps that you see. There is a lot of hardware behind. We put everything on the cloud. We make sure monolithic systems are breaking down into smaller systems that we can make more agile changes.
We are adding Salesforce and other systems to our portfolio. We have this little bump in 2021, much more because of the revenue side. We keep on and brought this few years back to 2016 or so, we would see a number closer to 27% of our costs. We are still evolving. Still some room to grow.
Not a lot, but some room to grow on this reduction moving forward. We split this number here in a slightly different way than we had done before. The dark blue here is the regular paying students. The gray is the FIES student. The student was financed by the government. This finance program is called FIES. The old FIES is extremely favorable to us in terms of profitability. All in all, because students tend to look for higher class courses, but also the other benefits in the responsibility of the government. This old FIES program, this old FIES was shut down in 2015. We had a legacy of students still studying with us, not graduating. What you see today, the 14,000, is all new FIES. This is what we are going to be seeing on a gradual basis as size of the FIES base. Again, not a special case.
It is not a case that gives us more flexibility than the regular student that we have. This study two and three is the semi on-site, so people come here instead of two times a week, it comes to twice a week. The other three days you study at home. This is going back to the level that were pre-pandemic as well. It is something that we did, and I think we hit the jackpot here because we had the student staying 700. We had the students being 200 people on site.
We had nothing in between for the online, of course. Now we have these guys in 350 or 400 to be in the middle of the price range. The point I wanted to make with the dark blue is that, we have had our base and revenues increasing slowly before the pandemic. We took a hit from the pandemic.
That was a sharp drop between 262,000- 249,000. Remember, there is a composition here. There is a sharp drop between 262,000- 249,000. We have been slightly above. I think this is good news. I think we have seen the bottom of the well and we are resuming growth, especially with this fantastic intake that we have. On the revenue side, it is important that we have an accounting issue, so I spoke a little bit about this on the first page. This drop in prices is an accounting matter. We have fewer people adhering to our financing programs, the FIES. Had we had the same levels of FIES adherence that we had last year, these prices here, you will see them as flat. Okay. Because on-campus plus medicine, pricing is a number that means nothing.
Just some of our competitors like to explain it this way, and people like to compare their with medicine numbers to our number without medicine. It looks bad on us, so we just keep this as a piece of trivia information. Again, on page 23 here, you can see that there's an increase in the thousand, an important increase. Do not get very excited. We are looking into the margins of the three businesses to be roughly in line what we had last year, which I think the size was 19% or 20%, I think 20% for the year. This is what we are looking into again this year. It is a matter of when you have very few advisors unit, the numbers get smaller. Some things split from one quarter to the other. We are going to see an average for the year of the on-site.
This is roughly around 10% like it was this past year. Hopefully, with greater revenues than what we had. Okay. Renewal. One important thing on the renewal. We had numbers that are. We have been on a path of growing renewal rates in all the business that we have. Last year, we had made a very aggressive campaign. So in the first semester, the out-of-pocket expenses could have been BRL 150. So we attracted some people that had a lower trend to renew. This year, the minimum they have to take out-of-pocket is like BRL 1,100 on the other side for the semester, usually more. So we attracted a bad class. So this renewal rate is a little smaller than it was last year. It is not 50%. We are expecting numbers to resume growth in the future.
Not fantastic growth, but the low single digits growth that we have been seeing because we have a better class coming up this time than what we had in the past. Okay. I will hand it over to Rossano to present you some of the financial numbers, and I will be back in a little while. Thank you.
Good morning, everybody. This is Rossano, CFO of the company. Talking about revenue. We have had a revenue expansion this quarter, mainly driven by the premium and digital learning sectors. That is leading our revenue mix to be increasingly diversified, and we are getting higher exposure to our highest growth and margin sectors, which is digital and premium sectors. Going forward. Discussing costs. We have had a very strict cost management. We have been very strict on cost management along the last few years. This is showing with a very strong cost reduction, mainly when you see costs over revenue basically in every line. As a highlight, marketing and sales is getting back to regular industry level following a higher than usual Q1 2021.
Things should be stable along this semester and along the year. The costs are down 2.6 percentage points, mainly due to our increasing efficiency on site utilization. This is something that Eduardo has shown you on previous slides that is going down every single quarter. We again show a relevant reduction on that impact. Leasing. This is a line we were alert at the start of the year because we know there is a lot of inflation pressure, and that should directly translate into higher leasing costs for us. We have been very tough on negotiating the contracts and also reducing our space to make sure we are as efficient as possible on our utilization of our sites. That is also showing a positive effect here in the quarter. On the other hand, we can see an increase in bad debt over revenue year-over-year.
That is due to extraordinary effects. If we exclude those extraordinary effects that I am going to explain later on, we should be stable year-over-year. What are the three effects I have mentioned? First of them is the seasonality of the digital intake. As you guys know, in 2020, we had two intake cycles, one every semester. Starting 2021, we have divided the intake into four different cycles, one every quarter. The effect of that in 2022 is that we also have two cycles of drop-off. We did not use to have any impact in Q1. In the past, the impact of the drop-off registration on that app would be always on Q2 and Q4. Now in 2022, for the first time, we also have the impact on Q1. That increases automatically, along 2023, the cost of bad debt.
That should get to the regular percentage points in 2023 compared to 2021. The second exceptional effect is the renewal of the medicine students, that according to a local law in the state of Rio de Janeiro, we have been forced to have the renewal of every student, independently of the delinquency level that we were measuring. As the renewal is our strongest collection tool, we have seen an increase in delinquency in medicine in Rio. That effect is going to end this semester. The effect of this law will end by the end of the semester, and we expect a recovery by the end of the year. The third one is a higher participation of the intake revenue against the total revenue.
We have a higher bad debt provision for the intake revenue, mainly due to what Rodrigo explained to you, the GIS, which is one of our tools we use in the intake that basically dilutes the revenue of the first two or three months along the life of the student. As the intake revenue over the total revenue has increased, we also increased bad debt over there. As I said, if we eliminate those three effects, we would be stable year-over-year on bad debt. Going forward. As a result of what we have seen as a re venue increase and also the strict cost control, we presented a 23% increase in EBITDA. We should highlight the non-interest factor with a 6 percentage points increase year-over-year, which is driving this change.
On the criminal segment, it is stable against last year after adjusting for the unusual cost curve which has seen in the first half 2021. The cost should be stable along the semester this year. The digital learning is slightly lower, mainly due to the bad debt impact, which was partially offset by our cost control initiatives that also benefits digital learning. Going forward, moving on to adjusted net income. We see a 30% increase in adjusted income, mainly due to our strongest operational results. It has been negatively impacted by our financial results, which is due to the higher cost of the debt, mainly due to the base tax increase that we have in Brazil. We also had positive results on our tax management. We have optimized our tax structure, which caused a very positive benefit on the semester.
That leads us to the BRL 96 million result on net income. We end the quarter with BRL 1.7 billion in cash and a 1.7 leverage rate, which is very comfortable for us looking forward. Going on, looking to the cash flow. The semester has generated BRL 36 million in cash. I am sorry, BRL 276 million in operating cash flow. That is 38% growth previous year, which represents an 88% cash conversion, which is also very positive and shows how strong our cash generation and balance sheet is. On that scenario, we have run a buyback program which has totalized BRL 100 million year to date until last month. We are at the moment analyzing the scenario to assess the continuity of this program or not. When looking to CapEx, we have seen an increase of 30% year over year.
This is basically a curve that is flatter than it has been last year. In the forecast full year, we are looking to a BRL 532 million expenditure, which is lower than last year, both in absolute values and as a percentage of the revenue. Important highlight here is the concentration of that CapEx on digital transformation and IT, and also on the expansion of our business. It shows our consumers that on the transformation of the business on an increasingly digital world, we see the benefits of these investments on the previous slides that rather has shown two very interesting examples, both on the admissions and also on the learning process of our students. We see that as very positive, and will keep investing in digital transformation and IT along the following years. With that, handing over to Eduardo for the conclusion.
Thank you, Rossano. As, not only the full page for you, but very important growth in student base in all the businesses. Net revenue also important growth, with the exception of on-campuses and it is what I mentioned to you, some accounting issue of less, fewer DIS, GIS . We should see some reversion of that in the future. Very important increase of EBITDA and also of percentage margin. We put some numbers on the right-hand side of how to look to the future. We mentioned already the 7,200- 7,400 students on the grads until the end of this year, 250 on the center. The students per campus, we are at 3,300. We coming back to the logic of the campus here. Campus is really important.
As Rossano mentioned, we're having a smaller number in nominal terms for this year, which with increase of revenues, it's going to be what we had last year, 11%, we should see a smaller number this year. The way we see this in a couple of years' time is coming back to the 7%-8% of net revenue. That's just three years of reality. Repeating myself from the first part, messages that we would love you guys to take home. One, very, very good quarter. We're very happy about it. Number two, don't get super excited. We had a very good quarter, but over a low comparison base. Last year, the second quarter was a fantastic quarter, mostly because we postponed some of the first quarter guys to the second quarter on the intake.
There was a transfer of value from one quarter to the other. First quarter, we had a low base, second quarter going to have a high base. We should see numbers around the same numbers that we had the second quarter last year and the second quarter this year. Great result. Don't get super excited, but you can see the numbers, the trend that we have. We cannot understand or justify us trading at 4x or 5x EBITDA like we're seeing today. I think this is not only for us, but for the sector as a whole. There's a clear improvement. The worst is certainly behind us. We have prepared. We are way stronger than we were before the pandemic, both in absolute terms and relative terms in the market.
See a lot of small guys in various schools out there going to be bought or to go out of business. We're seeing. I don't want to sound like the bearer of bad news here, but this is what's going on, right? There's a lot of room for consolidation. We are not super excited M&A right now. It became very expensive, some deals, and then us holding pre-test deals while we have very high interest rates out in the market. But again, we'll have to be either a company that's in the same situation as us, very undervalued by our perspective, or a very special business that will complement our portfolio some way. Again, we have a lot of hard work ahead of us. The results we're showing here is a reassurance for us that we're in the right path.
Thank you very much for your trust. Thank you very much for being with us. Again, I ask you if you appreciated this person in English status. Our IR department knows because they keep on bugging me not to do two sessions. I think despite the small audience, I think this is worth not having a direct communication with you instead of going through a translator. Thank you.
We are going to start the question and answer section for investors and analysts. If you wish to ask a question, please click on raise hand. If your question has already been answered, you can leave the queue by clicking on lower hand. Once again, to ask a question, please click on raise hand. The question and answer section is over. We would like to hand the floor back to Mr. Eduardo Parente for the company's final remarks.
Great semester. Don't get super excited. Most of that we have today doesn't reflect the reality that we have. Thank you very much for your trust. Thank you very much for the patience for this, that have come with us through these tough times. I hope to see you in three months from now. Thank you.
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