- COVID-19 pandemic has triggered a closure of educational institutions; Schools, colleges, and universities are now adopting online learning platforms.
- E-learning has shown several benefits and experts believe that the new mode of imparting knowledge might go on beyond the pandemic era.
- ASX-listed online education service provider iCollege Limited ended the June quarter with nearly A$845k cash at bank and delivered unaudited revenue of nearly A$11.3 million for FY2020.
- Janison Education Group has been nominated to carry almost 37k online examinations for students at the University of London with its EdTech solution.
While nations are at different stages concerning the COVID-19 cases and infection rates, at present, there are over 1.2 billion children across the globe who are affected by school closures due to this pandemic. With this unexpected move away from the classroom in many parts of the world, some are speculating whether online learning will continue post the pandemic, and how such a move would impact the education market across the globe.
COVID-19 pandemic has triggered educational institutions closure around the world. With the onslaught of this turmoil, the first of its kind and one of the worst pandemics since the Spanish Flu of 1918, everyone’s lives have changed drastically.
GOOD READ: Impact on e-learning business post lockdown
Governments in each country are taking every measure possible. Several nations have banned public gatherings, but schools and colleges cannot afford to delay their sessions for long. And without any signs of COVID-19 slowing down, online education is the only way educational institutions would be capable of completing the syllabus on time and maintain their student bodies.
With the hovering uncertainty and the need to continue teaching-learning practices, schools and colleges have resorted to an untested, yet swift, solution to this catastrophe. Many educational institutions have embarked on the technological platforms for providing online learning programs to students and have made significant investments. While the investments do raise the costs for the institutions, it helps ensure that the learning continues and keeps the institutions up and running.
As many industries shifted towards the new trend of work from home, schools, colleges, and universities are also adopting the same element distinctly. They have implemented technology to enable web conferencing-based face-to-face tutorials, lectures, and online assessments, among others. The coronavirus pandemic has been an inflection point for the education industry, and with the advantages of e-learning becoming evident, the shift is likely to remain post the crisis.
With this backdrop, let us shed some light on two ASX-listed online education stocks and their performance:
iCollege Limited (ASX:ICT)
ASX-listed online education services provider iCollege Limited forms a part of the consumer services industry comprising seven businesses. The Company offers a broad range of services and products to the global education sector.
On 9 July 2020, iCollege Limited reported financial and operational performance for the quarter ended 30 June 2020.
Highlights from the financial front:
Cash receipts of ~A$2.7 million which includes A$400k of government stimulus despite COVID-19 turmoil. The Company disclosed that cash receipts for the fiscal year 2020 surpass A$11.2 million. Notably, iCollege ended the quarter with nearly A$845k cash at bank, which was due to aggressive cost management initiatives, stable cash receipts from continuing business operations along with government stimulus.
This has been a particularly resilient performance for iCollege achieved in a period of unprecedented business interruption. While the operating divisions encountered numerous rolling challenges in this quarter, including the movement of students to online training and the closure of most campuses, iCollege delivered unaudited revenue of nearly A$11.3 million for the financial year 2020.
Beginning in March-2020, iCollege developed a COVID-19 response and action plan with the key purpose of the plan being to make sure the health as well as the safety of all students and staff. Moreover, this plan was effectively implemented in a staged fashion to ensure minimal disruption to students.
Stock Information: ICT stock was last trading at A$0.036, in line with its previous close. With a market cap of approximately A$19.09 million, the Company has ~530.23 million shares trading on ASX.
Janison Education Group Limited (ASX:JAN)
ASX-listed education technology pioneer Janison Education Group Limited provides online learning as well as digital assessment solutions for several educational courses. The group offers learning by its two main offerings in the education technology, and these are Janison Insight and Janison Academy.
Wayne Houlden founder of Janison to become Vice Chair of Janison Board
On 2 July 2020, Janison Education Group disclosed that Wayne Houlden, the founder of Janison, is to be appointed as the Vice-Chair of the Janison Board with effective 2 July 2020. With this appointment, Mr Houlden has no intention of moving his shareholding position, and he will continue to remain a substantial shareholder in the Company.
University of London Students to take exams online by using Janison’s technology
On 29 May 2020, Janison Education Group disclosed that it had been chosen to offer the technology and services for delivering exams online for distance and flexible learning students at the University of London.
The group has been nominated to deliver 37k examinations online for students at the University of London who are studying through distance and flexible learning in total 100 nations. Notably, this deal is anticipated to be worth almost A$650k for Janison for the next 2-years.
The EdTech solution of Janison will permit the University to complete its key assessment requirements during the restrictions on global travel triggered by the COVID-19 pandemic. This would be the first time that in any University study programmes will deliver exams digitally, and the first time the University will utilise remote proctoring technology.
Janison Education Group, London University and its CoSector division focusing on digital solutions for higher education and all have toiled to a stringent target to make these exams possible for students, with professional requirements.
Stock Information: On 10 July 2020, JAN last quoted at A$0.362, down by 3.467% from its previous close. The Company’s market cap stands at ~A$78.62 million, with approximately 209.65 million shares trading on the ASX.