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.
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.
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.