Accelerated growth of digital segment, strategic investment in Junior ELT, and cost optimization in adult ELT driving changes to the revenue mix, improved operating efficiency and an expected return to pre-pandemic growth and profitability in 2021
SHENZHEN, China, Nov. 18, 2020 (GLOBE NEWSWIRE) -- Meten EdtechX Education Group Ltd. (NASDAQ: METX) (“Meten EdtechX” or the “Company”), a leading omnichannel English language training (“ELT”) service provider in China, provides an update on trading and guidance for 2021, ahead of the release of its unaudited financial results for the third quarter of 2020.
Business Update:
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1 Inclusive of the permanently closed 11 learning centers for adult ELT.
Guidance 2021
Alan Peng, CEO of the Company commented:
“Meten EdtechX and the wider ELT market in China are gradually recovering from the COVID-19 pandemic, though trading conditions in the second part of 2020 remain challenging for our core ELT adult offline business.
Despite these challenges and losses incurred during the year, we continue to strongly believe that China remains fundamentally a high growth market for the ELT sector, and our diversified omnichannel offering and strategic footprint in tier 2, 3 and 4 cities give us a significant competitive advantage. During 2020, we have taken decisive and necessary action to ensure we emerge in 2021 in a stronger position with a leaner cost structure, enhanced operating efficiency and increased exposure to the higher growth segments of junior/K12 and online business segments.
We will continue to provide trading updates to the market on a regular basis as the situation evolves. Our unaudited financial results for the third quarter of 2020 will be released in early December. We are also committed to establishing equity research coverage of our stock in 2021, so that our overall performance and the acceleration of our digital growth are benchmarked with other market peers.”
The above business update and guidance for 2021 reflect Meten EdtechX’s current and preliminary view, which is subject to uncertainty and change.
For investor and media enquiries, please contact:
Citigate Dewe Rogerson
meten@citigatedewerogerson.com
+44 (0)20 7025 6400
About Meten EdtechX
Meten EdtechX is a leading ELT service provider in China, delivering English language and future skills training for Chinese students and professionals. Through a sophisticated digital platform and nationwide network of learning centers, the Company provides its services under three industry-leading brands: Meten (adult and junior ELT services), ABC (primarily junior ELT services) and Likeshuo (online ELT). It offers superior teaching quality and student satisfaction, which are underpinned by cutting edge technology deployed across its business, including AI-driven centralized teaching and management systems that record and analyze learning processes in real time.
The Company is committed to improving the overall English language competence and competitiveness of the Chinese population to keep abreast of the rapid development of globalization. Its experienced management is focused on further developing its digital platform and expanding its network of learning centers to deliver a continually evolving service offerings to a growing number of students across China.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the business update and guidance for 2021 in this announcement, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed or furnished to the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the impact of the COVID-19 outbreak, our ability to attract students without a significant decrease in course fees; our ability to continue to hire, train and retain qualified teachers; our ability to maintain and enhance our “Meten” brand; our ability to effectively and efficiently manage the expansion of our school network and successfully execute our growth strategy; the outcome of ongoing, or any future, litigation or arbitration, including those relating to copyright and other intellectual property rights; competition in the English language training sector in China; changes in our revenues and certain cost or expense items as a percentage of our revenues; the expected growth of the Chinese English language training and private education market; Chinese governmental policies relating to private educational services and providers of such services; health epidemics and other outbreaks in China; and general economic conditions in China. Further information regarding these and other risks is included in our annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no duty to update such information, except as required under applicable law.