KME reported a 221% increase in online lessons to 654000 (over 295000 in FY2020). That averages out at 54500 month / 12576 week. This is substantially more than the last update stated (560000 year / 46666 month / 10769 week).

It looks like there has been another large increase in online lessons. Perhaps the increase is linked to a return to lockdowns. Maybe a general realisation that online lessons are a new normal, and a return to pre-covid norms is less likely.

Face to face lessons consistant at 1440000 year.

Held IRL

The online lessons part of the business looks to have prompted the recent share price spike. The half year report stated, “KME delivered 290,000 online lessons for the half, an increase of 800% with gross revenue at the student level of $16.1M, compared to $1.7M in the previous half year”.

KME reported the following relating to online lessons...

On 23/9/2020, KME announced 46000 online lessons per month vs 3200 for the same period last year). This is when the share price started to spike. By my calculations: 46000*12 = 552,000 lessons per year AND 552000/52 = 10,615 weekly). 

This was confirmed on 17/11/2020 as 11,000 average weekly online lessons (since March 2020 lockdown), compared to CY 2019 with 450 average weekly online lessons. My calculations: 11000*52 = 572000 per year AND  572000/12 = 47,666 per month).

The half yearly report and accounts, on 23/2/2020, showed 290,000 online lessons for the half. My calculations: (290,000*2)/12 = 48333 per month AND (290,000*2)/52 = 11153 weekly.

The investor update on 1/3/2020 shows 280,000 online lessons for the half. My calculations: 280000*2 = 560,000 per year AND 560,000/12 = 46666 per month AND 10769 weekly.

I feel like I’m back at school trying to complete a maths test.

Announcements titled “company update” and “letter to shareholders” were not a general update on the company, or a general letter to shareholders, but related to center acquisitions.

KME's financial reporting over the above period appears randomly labeled, fragmented, and inconsistent. I really hope the lessons they provide to students are easier to follow than their financial reporting.

It looks like the increase in online lessons is being maintained but after the first large jump (reported in september), there has been little further acceleration over 6 months. In fact the most recent numbers indicate a small decline (unless they used the wrong number in the report - or are not entirely sure of the exact number). Perhaps there is a small decline (in online lessons) due to some students preferring face to face while not in lockdown.

I own a small holding - in real life.