Proactive Investors - Run By Investors For Investors
Why invest in LM?
Lingo Media Corporation: DEEP DIVE
OVERVIEW

Lingo Media's 2Q net profit soars on the back of new contracts, lowered costs

The company is gaining traction in Asia where people are looking to take language courses to work or study internationally
Students in a class
OVERVIEW: LM The Big Picture
The company has entered into a partnership with iTEP International, the developer of the international test of English proficiency

English-language learning specialist Lingo Media (CVE: LM) has posted a sharp rise in its second-quarter earnings by paring back its operating expenses and signing new digital learning sales contracts.

The company is gaining traction in Asia, in particular, where more people are looking to take accredited language courses to work or study internationally.

For the quarter ended on June 30, Lingo’s net profit soared to C$477,208, which represents a more than tenfold jump from its net profit of C$43,122 in the year-ago period. On a per share basis, its earnings came in at C$0.01 per share, compared with C$0.00 in the same period last year.

Khurram Qureshi, Lingo Media’s chief financial officer, said the company was able to maintain its print-based royalty revenue in the quarter and also reaped the benefits of securing new digital learning sales contracts via its distributors.

Read: Lingo Media announces distribution agreement with WARP Worldwide in China

In the three-month period, for example, the company entered into a commercial partnership with iTEP International, the developer of the International test of English proficiency, to provide online testing services.

“Through this strategic partnership, our ELL Technologies division is now able to provide our users with an accredited certificate that is recognized by employers and international higher educational institutions,” noted Qureshi in a statement. “This significantly expands and extends the value of our product offering and gives us an edge over our competitors.”

The company also widened its reach in Asia in the quarter by closing initial sales contracts with Gale, a part of Cengage Learning, with universities in Thailand & Japan.

Read: Lingo Media completes first installation in alliance with HP

Its operating expenses were also slashed in the quarter, falling to C$225,706, from C$432,156 in the same period last year. Revenue, meanwhile, dipped slightly to C$960,159, from C$1.069 mln in the year-ago period.

Lingo Media is a provider of digital and print-based English language learning tools.

View full LM profile View Profile

Lingo Media Corporation Timeline

Related Articles

marketing
January 30 2019
“With the geopolitical landscape remaining in flux, clients are looking for greater certainty from their marketing programmes which our agencies and data businesses are proving able to provide"
clapperboard
March 04 2019
At the Completion Contract business there have been lower volumes and the average budget per film has reduced
Students in a class
August 27 2018
The company is gaining traction in Asia where people are looking to take language courses to work or study internationally

© Proactive Investors 2019

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use