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China Online Education reports loss but picks up boy band star

China Online Education Group, the online and mobile education platforms that enable students to access live interactive English lessons with international foreign teachers, has announced a loss of ¥416.7 million (£47 million) for 2018, compared to a loss of ¥580.8 million in 2017. Net revenue for the year was ¥1,145.5 million, up 35% from the figure of  ¥848 million reported in 2017.

The Beijing-based company also reported results for the fourth quarter of 2018 ending 31 December. It’s quarterly net loss was ¥140 million, compared to a net loss of ¥159.7 reported in Q4 2017. Net revenue for the quarter was ¥298 million, up from ¥260.6 million reported in Q4 2017.

Jack Jiajia Huang, founder, chairman and chief executive of 51Talk, subsidiary of China Online Education said: “Our core K12 mass-market one-on-one offering continued to grow at a healthy pace in the fourth quarter as we executed on our initiatives to further penetrate non-tier-one cities. Both our revenues and gross billings exceeded the high-end of our guidance, with our core K12 mass-market one-on-one offering accounting for 72.7% of our total gross billings in the fourth quarter. We are aggressively pursuing our non-tier-one city strategy and are pleased with our strong hold in these areas, which accounted for 69.7% of our K12 mass-market one-on-one gross billings in the fourth quarter. There remains great demand for high-quality online education English courses in China, particularly in non-tier-one cities, and we aim to make our courses more accessible to this population.

“As we look to attract more students to our leading online education platform, we are actively raising our brand profile. In February 2019, we engaged China’s phenomenally popular super student Junkai Wang, from the hit boy band TF Boys, as our new brand spokesperson. With a massive presence among the K12 demographic, Junkai will work with 51Talk to promote our high-quality English education for students in China.”

Posted on: 22/03/2019

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