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 second-quarter 2020 net income of ¥32.8 million (£3.7 million), compared to a second-quarter net loss of ¥33.2 million for 2019. Net revenue for the quarter was ¥493.5 million, up from ¥352.6million reported for Q2 2019.
The Beijing-based company also reported results for the first six months of 2020. Its net income for the period was ¥83.6 million, compared to a net loss of ¥99.4 reported for the first six months of 2019. Net revenue for the six-month period was ¥980.6 million, compared to net revenue of ¥672.7 million reported for the first six months of last year.
Jack Jiajia Huang, founder, chairman and chief executive of 51Talk, subsidiary of China Online Education said: “We extended our outstanding performance by delivering another quarter of robust across-the-board results in the second quarter. These results were fuelled by the continued optimisation of our K12 one-on-one mass market strategy in non-tier-one cities as well as the overall growing market awareness and acceptance of online education brought about by the effects of the Covid-19 pandemic. Financial highlights of the second quarter include our net revenues increasing 40% year-over-year to reach ¥493.5 million, a figure 5% above the high end of our guidance. Net revenues from our core K12 one-on-one mass market offerings increased 61% year-over-year to reach ¥417.9 million. Furthermore, our gross billings reached ¥676.4 million, growing 35.7% year-over-year and recording the highest growth rate since the first quarter of 2018. Our K12 one-on-one mass market gross billings grew 46.4% year-over-year to ¥612.5 million, accounting for 90.6% of our total gross billings.
“Operationally, our teams continued to execute well and capture market opportunities. We grew our number of second quarter active students by 27.8% year-over-year. To augment our K12 offerings, we recently launched brand new Level-K courses for kindergarten students aged three to five, aiming to broaden our student base and build good study habits from a young age through our platform.”
Date published: 14 September 2020