- Education provider, iCollege Limited (ICT), has reported record cash receipts of $3.17 million for the March 2020 quarter
- The positive results come despite the “material impact” of COVID-19 on its operations
- The company was able to quickly switch to online course delivery, which has been able to minimise disruptions
- Still, in order to preserve its liquidity, iCollege plans to apply for all eligible government initiatives and stimulus programs
- iCollege is currently trading flat at 3.6 cents each
Education provider, iCollege Limited (ICT), has reported record cash receipts of $3.17 million for the quarter ending March 31 2020.
The company operates seven businesses across Australia and Asia, with a focus on vocational education and training programs.
A total of 51 per cent of iCollege’s revenue is generated from its international student sector, with the remaining 49 per cent coming from its government-subsidised domestic student arm.
iCollege currently holds State Government funding contracts in WA, SA, QLD, NSW and the ACT, and plans to pursue further opportunities in other states as they arise.
Like many educational entities, the company has been hit by the widespread impact of COVID-19. However, with diversified income channels, iCollege is in a uniquely resilient position compared to its competitors, many of which rely solely on the international student market.
In order to side-step further impacts brought on by the virus, iCollege was able to quickly transition to the online delivery of its courses. As such, this has significantly reduced operational disruptions and alleviated adverse effects on student attendance and, subsequently, revenue.
In addition, the company has taken a staged approach to social distancing measures. This initially began with reduced numbers of in-class students, eventually moving to the complete closure of international campuses.
However, in the face of adversity, iCollege has found a silver lining. With the broad closure of educational providers, the company is expecting that many international students who have remained in Australia will need to switch colleges once business resumes.
As such, there exists “an opportunity for iCollege to become the college of choice for these students.”
“iCollege proposes to do this through the rollout of an aggressive and targeted social media marketing campaign that communicates to students that iCollege is open for business and here to help,” the company said.
In an effort to maintain its liquidity, iCollege has implemented a number of internal cost-cutting measures.
These include a reduction or deferral in the salaries of senior leadership, layoffs for all non-essential employees, the deferral of all capital expenditure projects, and a total freeze on hiring.
iCollege is also planning to apply for all eligible government initiatives and stimulus programs.
Shares in iCollege remain flat this morning and are trading for 3.6 cents each at 10:14 am AEST.