One-On-One Records a 96% Increase in its Bottom Line YTD

  • One on One Educational Services Limited has recorded a net profit of $10.68Mn for the second quarter of the financial year ending February 28, 2023. This represents a 72.8% yoy increase. For the six months ending February 28, 2023, profit totaled $17.41Mn, up 96.2%.
  • Revenue for the quarter was up by 17.5% yoy to $72.59Mn, which supported a 47.3% increase for the six months to $153.45Mn. This was mainly driven by increases in the business-to-customers (B2C) and business-to-business (B2B) revenue lines. The increase in revenues was also driven by new contracts acquired and ongoing contracts from the previous financial year.
  • Additionally, the company benefited from economies of scale in executing projects, resulting in a $4.48Mn (27.4%) decline in direct costs for the quarter, 6.7% decline to $26.76Mn for the six months.
  • The company’s bottom-line was; however, tempered by a $21.73Mn (63.0%) increase in operating expenses to $56.21Mn when compared to the same period in 2022. Operating expenses for the six-month period amounted to $110.09Mn, representing an increase of $43.62Mn or 65.6%. This was due to various factors, including staff cost for developing and expanding new products initiatives, promotional activities to increase awareness of the company’s products, software license fees to support its remote office operations and registration fees associated with the listing of the company.
  • One’s stock price has decreased by 5.67% since the start of the calendar year. The stock closed Thursday’s trading session at $1.16 and currently trades at a P/E of 96.7x which is significantly above the Junior Market Others Sector Average of 22.3x. As the company moves forward with its growth strategy and takes advantage of the reopening of the economy, we expect to see an improvement in its earnings per share, which should help improve its P/E ratio.
  • As the company moves into Q3, there is optimism surrounding its growth in all of its divisions. The launch of the OneAcademy and the continued expansion of the government and business divisions are expected to be key drivers of growth over the next quarter.

(Sources: JSE & NCBCM Research)