Looking forward to seeing how many lessons on a net basis are lost and what happens to online numbers this half. I am optimistic the virus will be a net positive over a three year timeframe for KME, although this should be a pretty ugly year as for most businesses.
Reasons for net positive over a 3 year timeframe:
A lot of kids missing school at the moment. I asked a teacher recently if this period of 'missed learning' will have a longer term impact on her students. She said the only the few brightest students in the class will be unaffected by the missed learning. Competitive parents will reach out to KME and other tutoring services to help their children catch up.
This period will act as a catalyst for the shift to (presumably) higher margin, broader reach online lessons which the company has been pushing. New software plus corporately run online lessons will hopefully gain traction.
From most recent HY presentation:
KME Price at posting:
$1.00 Sentiment: Hold Disclosure: Held
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