Most countries have their own currency. If you’re crossing borders in essentially any region in the world other than Europe, you’re going to need to change out your money if you plan on making a cash purchase. However, the dollar has become a widely-used reserve currency. However much countries value their local currency options, they see a certain wisdom in also trading in a monetary benchmark that everyone can share.
A similar situation is fast starting to exist for the use of English as a sort of international language. In an increasingly globalized world, English is fast becoming a “global reserve language” of sorts. Everyone’s primary tongue remains what they grew up with, but when learning a second language English is the first choice. Anyone looking towards a career in business or in pursuing higher education is going to find progress much more difficult without a common language with which to communicate.
And addressing that growing market is Canadian company Lingo Media (LM:CA) (LMDCF) . Lingo reported earnings on Thursday after market close, and the numbers were strong. The company’s technology-based efforts to create a wide variety of products tailored to each individual culture or country have helped it take real strides towards monetizing the growth trend in English language learning.
Big Quarter Demonstrates a Growing Industry
Lingo Media reported revenue of $1.79 million for Q2 of 2015, representing just a touch more than double the figure from the same period a year ago, demonstrating that Lingo Media is clearly riding the English language wave. Net profit hit $979,103, or $0.04 per share, good for a 350% increase over Q2 2014.
"We are pleased to report record financial results for the second quarter of 2015,” said Michael Kraft, CEO of Lingo Media. “This performance is attributable to an increase in revenue from digital learning which increased approximately 776% year-over-year. In the quarter, digital revenue as a percentage of total revenue was greater than print-based revenue for the first time in our operating history. This is a direct result of our enhanced sales and marketing effort which led to securing new sales contracts in Colombia, Mexico, Peru and other Latin American markets. The EdTech market for English language learning continues to present us with favourable sales growth opportunities in Latin America and globally."
The dramatic increase in digital revenue is particularly notable. Digital language learning products are proving to be a key tool in emerging markets. The ability to provide a strong English language curriculum without the necessity of a classroom or teacher can frequently create opportunities in countries with limited resources or remote locations where traveling is difficult. It’s one of the major growth drivers for the industry, and the gains there reflect well on Lingo’s offerings in the segment.
The Cutting Edge of English Language Learning
The rapid changes to the world we live in over the last two decades have produced a global culture, one where far-flung peoples and cultures can communicate with ease. In such an environment, the adoption of a universal second language appears nearly inevitable. A common language to trade ideas with different peoples is rapidly becoming a key part of doing business in a global economy.
Lingo Media appears poised to capitalize on that, growing both its strong portfolio of content and its technology platforms.
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