Early childhood education service provider, RYB Education, reported a second-quarter 2020 net loss of $12.8 million, compared to net income of $2.9 million reported for the second quarter of 2019.
Net revenue for the second quarter was $12.8 million, down from revenue of $53.6 million reported for Q2 2019.
The Beijing-based company also reported results for the first six months of 2020. It reported a net loss of $39.5 million for the period, compared to net income of $594,000 reported for the first six months of 2020. Revenue for the six-month period was $30.1 million, down from $87.8 million reported for the first half of last year.
RYB co-founder and chief executive Yanlai Shi said: “During the second quarter, in the face of prolonged facility closures due to impacts of the Covid-19 pandemic, we continued to enhance our online service capabilities to ensure that students would have undisrupted remote access to high-quality at-home learning resources and to a good collection of early childhood education content. Following the initial launch in the first quarter of our paid course platform for kindergarteners, during the second quarter the team further added content offerings available on the platform. We simultaneously carried out a pilot promotion of this platform for enrolled students at some directly operated kindergartens, and their parents provided positive feedback. With the help of this platform and most of our facilities across regions back to normal operation over time, we will push forward the online-merge-offline practice for learning at the kindergarten level. While still in its very early stage, I believe this platform will help us better upgrade our service quality as part of our digitalisation efforts in kindergarten services. With a complete and polished content platform fully established in the future, we look forward to exploring its potential to be adopted across market.
“At the same time, we also completed planning for service management model for third-party kindergarten and play-and-learn centre operations. We plan to leverage our integrated online-merge-offline model and expand existing services by this service management model. Through this service management model, we can deliver high-quality content, standardised management systems, and targeted service training to a broad range of facility operators in a systematic manner with modularised offerings. We believe this can also help reinvigorate the industry. In addition, we kicked off our early-years childcare business, an initiative for which we have been doing market research, developing educational content, assembling a team with expertise, and setting up an operating pilot facility for nearly three years. With a supportive policy environment for early-years childcare services, along with our core strengths and network presence, we are confident to see further growth in this service unit, and it becoming an integral part of a refined and expanded service offerings for zero-to-six year olds.”
Date published: 28 August 2020