[Click eStock] "Cheongdam Learning, Genuine Metaverse Platform Evolution"

[Asia Economy Reporter Ji Yeon-jin] IBK Investment & Securities announced on the 20th that Cheongdam Learning is expected to evolve into a metaverse platform company with the launch of its online education service, Bouncy.

Seung-hoon Lee, a researcher at IBK Investment & Securities, explained, "Bouncy is an educational service combining the existing content of April Language Academy and live class-based SNS functions, expected to be launched in December. After stabilizing domestically, the goal is to expand to global services such as China and Vietnam, offering one-on-one live classes between live and AI teachers, as well as smart learning teaching aids and AR-based apps."

Lee predicted that once Bouncy is launched, the user base will expand rapidly based on the existing 30,000 April Language Academy students, creating a snowball effect in traffic.

Meanwhile, Cheongdam Learning's third-quarter sales are estimated to have increased by 16.8% year-on-year to 53.4 billion KRW, and operating profit is expected to have risen sharply by 77.9% to 8.5 billion KRW. The number of students at April Language Academy and Ccube Coding increased by 23.0% and 52.2%, respectively, compared to the end of the previous year, and fixed costs decreased due to the live class effect. Additionally, profitability improved at the subsidiary CMS Edu, leading to a significant increase in operating profit.

Lee said, "Since a mid-year dividend of 1,000 KRW was decided this year, a similar level of dividend is expected in the second half. Although concerns about the China business have increased recently due to regulatory issues, regulations are expected to focus on the formal school curriculum, so the risk of regulation on supplementary education such as English conversation is considered limited."