China’s largest education company, New Oriental Education and Technology Group Inc., reported its unaudited Q3 financial results on Tuesday.
According to the report, total net revenues reached USD 347 million, a year-over-year increase of 20.6%, while net income for the company reached USD 48.4 million, representing an increase of 16.8% compared to the same quarter last year.
The company’s online education platform Koolearn.com has recorded revenue growth of 25% year-over-year in the third quarter, having doubled its registered users and increased its paid users by 70%.
In February, the company announced that its subsidiary, Beijing New Oriental Xuncheng Network Technology, which operates Koolearn.com, will receive RMB 320 million (USD 49 million) in financing from tech giant Tencent to expedite its development in the online education business and to create new products. Xuncheng is also planning to launch an IPO in mainland China.
Koolearn.com covers 3,000 courses including overseas tests, domestic tests, and K-12 education. In July 2014, Xuncheng launched an app with Tencent called “Uda” for middle school and high school students studying English.
New Oriental Group’s online education platform will look to be a strong domestic rival for Udacity, which launched in China on Tuesday. The latter landed USD 105 million in a round of funding in 2015, bring its valuation to about USD one billion.
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