An estimated two billion people
around the globe want to learn to speak English, providing a significant
opportunity for businesses that can translate this market demand into financial
returns. In 2013, the global market for language learning was estimated at more
than $56 billion, and English programs accounted for a substantial portion of
that spending. Lingo Media Corporation (OTCQB: LMDCF), through a combination of
both online and print-based education products, is thriving in this lucrative
market segment under the leadership of one of the industry’s most seasoned
executive teams.
For many years, Lingo’s operations
centered on a business unit that co-publishes textbook programs used in China.
In 2014, this established unit reported free cash flow of about $1.5 million.
However, in recent months, the company has transitioned its operations to take
advantage of the rapidly expanding market for educational technology, which is
currently outpacing the growth of brick-and-mortar education by a considerable
margin. As a result, Lingo promptly acquired an award-winning content library,
as well as two other eLearning platforms, to create one of the most diverse,
customizable language learning tools on the market.
Through its proprietary eLearning
software, Lingo adds a collection of revenue streams that capitalize on the
strong performance of the global language-learning market. In particular, the
company receives licensing fees for each new client, as well as recurring
licensing fees throughout the educational experience. By partnering with a
top-tier software development team, Lingo has successfully built a library that
boasts thousands of lessons designed to meet the specific needs of its clients,
improving the outlook of licensing revenue for the foreseeable future.
When entering new markets, Lingo
utilizes an innovative business strategy to keep costs down without sacrificing
on client satisfaction. Instead of opening permanent offices in each individual
country, the company forms relationships with external contractors and
distributors in order to market its products. This strategy allows Lingo to
consistently minimize costs, giving the company an advantage over its
competitors in the same markets. For prospective shareholders, these efforts
promote high margins and potentially rapid growth.
In the first quarter of 2015,
Lingo demonstrated the effectiveness of its unique approach to market growth by
posting a 176 percent year-over-year increase in revenue, recording over
$651,000 for the period. Similarly, the company recorded a net profit of more
than $225,000, up from a net loss of $52,870 in the same period of the previous
year. Lingo will look to build on this profitability throughout the remainder
of 2015.
Moving forward, Lingo’s priority
is to win new contracts and fuel revenue, earnings and cash flow in an attempt
to pay off outstanding debt and finish the year with a clean balance sheet.
Since small-cap growth stocks with low debt and high profit margins offer
strong potential for market gains, these efforts could serve as a catalyst for
rapid increases to Lingo’s market value in the months to come.
For more information, visit
www.lingomedia.com
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