Meten EdtechX Education Group Ltd. (METX) stock prices were up a massive 25.1497% shortly after the trading day commenced on April 29th, 2021, with the stock starting the day strong at USD$2.09.
Enrolment Numbers Skyrocket
Registered users for online courses saw a 49.2% year-over-year increase, bringing the net total up to 1.79 million as of December 31st, 2020. The easing up of COVID-19 government-mandated restrictions that prompted the indefinite closure of learning centers has enabled METX to diversify its course offerings and leverage newfound cross-selling opportunities across its online and offline platforms. Earlier impacts of the COVID-19 pandemic on offline student enrolment led to a 43.1% decrease in overall student enrolments for the fiscal year 2020.
3 Tiny Stocks Primed to Explode The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.
We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.
Click here for full details and to join for free
Expansion of METX Portfolio
2020 also saw METX continue to invest in product development as the company launched a myriad of products across its offline and online platforms. Recent additions to the company’s portfolio include Japanese, Spanish, and Korean language products, K12 junior products, and the “BiGao” exam preparation product designed for middle schoolers. The fiscal year ended December 31st, 2020 saw the company successfully deliver almost 16,146-course hours.
Reallocation of Resources
In a bid to reduce costs and form a leaner cost structure with a balanced revenue derived from a mix of offline and online, and adult and junior segments. To this end, METX has renegotiated 70 lease agreements for its self-operated learning centers, which account for nearly 40% of the company’s total leases. 27 adult ELT learning centers were also closed as resources were reallocated to the junior ELT and online ELT segments.
Success of Junior ELT Segment
These efforts paid off, with the company reporting on April 29th, 2021 that the gross billing for its junior ELT business was up by a staggering 485% in Q1 2021 compared to Q1 2020. Furthermore, student enrolment in the junior ELT segment was up 483% in Q1 2021 compared to the same quarter of the previous year. These improvements are a strong indicator that the company has returned to its pre-pandemic rapid growth trajectory.
Stellar Performance of Learning Centers
METX is proactively broadening the scope of its junior ELT segment within its existing network of 22 cities, with the burgeoning segment having received positive market feedback thus far. March saw the achievement of profit goals by all of METX’s learning centers, with 7 learning centers reporting gross billing that exceeded USD$154,380. The 61% increase in gross billing from student renewals and referrals indicate brand recognition and appreciation among students and their caregivers.
Future Outlook for METX
As METX continues to adapt to the pandemic in a landscape of easing government restrictions, the company is poised to extrapolate from the success it experienced before the global crisis hit. Armed with stellar financial and performance reports, the company continues to invest in the segments that offer it the greatest growth and profitability, with investors hoping for significant and sustained increases in shareholder value.