The current hot online education performance is not eye-catching

Last week, the two largest education institutions in the best stocks and the New Oriental good future and the latest earnings, according to the contents of the earnings report, both in revenue and net profit have maintained a substantial growth, the current hot online education in two Earnings performance is not eye-catching, only 3% -4%. However, the two unanimously proposed that they will increase their investment in online education. With the disclosure of information, some new layouts have gradually emerged.

Line is still the main business giant

On July 21 and 22, as the two biggest listed education and training institutions in the United States, the good future and New Oriental successively announced the latest earnings. From the earnings performance, although the current offline training as a traditional model is not optimistic about the industry, but the two giants still showed strong revenue and profit growth.

The good future, as of May 31 in the first quarter of fiscal 2015 earnings report, the good future revenue for the quarter 89 million US dollars, an increase of 45%; net profit of 13.4 million US dollars, an increase of 65.7%. Based on non-US GAAP, a good future quarter net profit of 17.4 million US dollars, an increase of 74.8%.

New Oriental, as of May 31 in the fourth quarter of fiscal 2014 earnings report, the quarter total new Oriental revenue of 288 million US dollars, an increase of 20%; net profit of 42.9 million US dollars, an increase of 52.2%. At the same time, New Oriental announced fiscal 2014 earnings report showed that fiscal year total revenue of 1.14 billion US dollars, an increase of 18.7%; net profit of 216 million US dollars, an increase of 58.3%.

From the business composition point of view, the traditional offline training still contributes the vast majority of revenues of the two giants, as the current hot online business performance in the two institutions is not eye-catching. Among them, the good future revealed that online business revenue in the previous fiscal year accounted for only 3% of the group, the New Oriental also accounted for only 3% -4%.

Various agencies overweight online layout

On the one hand, the proportion of online businesses in the giants of listed education companies is still very small. On the other hand, even if this small part of the business encounters embarrassment in making money, The scale is expected to exceed 100 million yuan this year, but it is still a loss. However, this does not prevent them from actively transforming their online businesses.

The good future CFO Kaufman said that although the current online business accounted for only 3% of group revenue, but it is the fastest growing, is expected in fiscal year 2015 accounted for 4% and above the group. Kaufmann also said that the future will increase strategic investment, "most of the company's investment activities will be used in the field of new technologies in the Internet, for example, after the acquisition through the research network, the company will extend the user base age after high school; By investing in a baby tree, the company gets new users who can participate in our MOBI and small class training programs in the future. "

Following the previous quarter said that next will invest 30 million US dollars to do online education, the new Oriental CFO Xie Dong-fire once again said it will increase investment in online education research and development and marketing. In addition to the original New Oriental Online, New Oriental Financial Report also revealed some new trends: Prior to the online education with Tencent cooperation rumors confirmed that the establishment of independent online education products for two months more than 300,000 users of music content; July The launch of online education platform OKAY, mainly for the K12 field; before the end of the joint venture with ATA will be 30 million yuan to set up online vocational education company, New Oriental contributed 55% stake.

At this point, listed education companies represented by New Oriental and a bright future have become clearer in the field of online business.

Opportunity and challenge of transition road coexist

In fact, in addition to the New Oriental and a better future, the other education in general education is also seeking online business transformation. By the end of March this year, the University of Science and Technology launched the online learning system e-learning, and it will bear the "vanguard" in the transition period of education.

Commenting on why these training giants are keen on the transition to online education, some industry analysts said that while online education is not currently having a real impact on the business of these organizations, in the long run their competitors have not only Is a traditional training course, but a rising online education. "The Internet is revolutionizing traditional business models and is also a great opportunity for providing new impetus to the growth of traditional training institutions."

In spite of this, there are still some challenges to be overcome in the current online education for the training giants. One of the major challenges is how to solve the difficult problem of turning a boat into a big problem when completing the online transition as a labor-intensive education and training industry . In addition, for learners, online education still needs to be popularized. According to the survey data of an institution, nearly 80% of the learners in the current non-mainstream learning mode are willing to pay less than 500 yuan.

Beijing Commercial Daily reporter Li Lixun / text