Lingo Media Corp. (OTC: LMDCF) (TSX-V: LM) is an EdTech company that's changing the way the world learns English through an innovative combination of proven educational techniques and accessible technology. The company provides both online and print-based solutions through its two distinct business units: ELL Technologies and Lingo Learning. Through ELL Technologies, Lingo has made considerable progress in English-learning markets throughout Latin America. Through print-based publisher Lingo Learning, the company has built a significant presence in the Chinese education market, which includes more than 300 million students.
The company's groundbreaking English programs are developed and marketed for students at every stage of development – from the classroom to the boardroom. This versatility has allowed Lingo to secure contracts and build relationships with clients in a variety of markets around the globe. In Mexico, a subsidiary of the company has partnered with a recognized university that allows it to offer its courses along with certification. In Peru, the company's subsidiary provides its groundbreaking Scholar program to a branch of the country's armed forces.
Through ELL Technologies, Lingo also markets electronic learning solutions that are suitable for pre-readers. Lingo's Kids program – which features cross-platform, multi-browser compatibility – requires no prior knowledge of the English language, allowing the company to address the entire student life cycle in blended learning environments, traditional classroom settings and the home with one cutting-edge solution. The Kids program addresses the critically underserved pre-school market, which includes roughly 181.4 million children across Asia and 30.1 million throughout Latin America and the Caribbean, according to UNESCO.
Although Lingo has traditionally leaned on its print-based offerings as a primary source of revenue, the company's recent efforts to shift into the thriving eLearning market have highlighted the immense potential of a more heavily digital approach. In the second quarter of 2015, Lingo recorded more revenue from digital products than print-based solutions for the first time in its history. With the global eLearning market set to reach $107 billion in 2015, according to a report by Global Industry Analysts, the company's performance and growing foothold in some of the world's most rapidly expanding markets place it in a favorable position.
- High Growth and Sustainable Licensing/SAAS Model
Ongoing Residual and Royalty Income
High Margin/Profitable Business Model
Building the World's Largest Digital English Learning Library
Fully Utilizing a Proprietary Suite of Learning Products
Growing Sales Pipeline in Asia, South America and Central America
Building New Custom Solutions Without Prohibitive Pricing
Digitally Simplifying The Global Desire to Communicate in English
Highly Unified, Qualified Management Team
Lingo Media is an established leader in the development and commercialization of English language learning products and services designed to support learners of English throughout various stages of life – from the classroom to the boardroom. The company continuously develops its resources and expands its global reach in order to bolster its position atop the language learning market in both published and electronic formats. Through its two subsidiaries – Lingo Learning and ELL Technologies – Lingo Media is delivering market-leading English language learning solutions that transcend global barriers and regional geographies in order to better address the entirety of the learning spectrum.
Lingo Media addresses the global market for educational textbooks and learning tools through Lingo Learning.
Lingo Learning is a publisher of leading educational textbooks and learning tools distributed with the express purpose of making teaching English easy. In its years of publishing educational titles, the company has distributed more than 350 program titles – for pre-school to post-secondary students – accounting for roughly 520 million total units.
Through Lingo Learning, the company has established a significant foothold in China, which is the world's largest education market. Lingo's popular and well-established line of learning resources, co-published in partnership with People's Education Press, is currently used by more than 60 percent of primary school students throughout the Asian nation. In other terms, approximately 18 million primary school students in China studied English with Lingo Learning textbooks and supplements in 2014.
Although the company is shifting much of its focus to the edtech space, a contract with the Chinese government will provide stable, recurring sales of roughly $1.5 million a year through 2020.
Lingo Media addresses the global market for technology-based educational tools and solutions through ELL Technologies.
ELL Technologies' award-winning product line features a host of English-learning solutions targeted at students of all ages – including Winnie's World, English Academy, Scholar, Campus, Master and Business. The company's innovative products provide cross-platform, multi-browser compatibility in order to enable language learners from markets around the globe to easily utilize its continuously expanding library of content, which currently features more than 2,000 hours of online training.
Through ELL Technologies, Lingo provides skill development solutions addressing the entirety of the learning spectrum – including listening, reading, speaking and writing. By providing both self-study and teacher led courses, the company has established a formidable presence in a collection of major markets, especially throughout Latin America.
In 2015, the company has secured contracts with both private and government clients in Mexico, Peru and Colombia. These partnerships are expected to serve as a strong foundation upon which to build a considerable foothold in the Central and South American educational markets as the company continues to develop, refine and expand its digital content library.
Lingo Media's ongoing shift from print-based language-learning tools to the educational technology market has it firmly positioned to benefit from the immense market potential of both segments. As such, the company's English language solutions include both legacy textbook programs and cutting-edge electronic tools targeted at English students in all areas of the learning spectrum.
PEP Primary English and Starting Line Textbook Programs
In the fourth quarter of 2014, Lingo Media announced the execution of a seven-year renewal agreement to co-publish and distribute these State Ministry of Education approved and listed textbook and supplemental learning programs in the People's Republic of China. In total, the company has co-published over 500 million units of textbooks, activity books, flash cards, audio-visual and teaching materials through this partnership.
Winnie's World is the inaugural title of Lingo's Kids program, which targets pre-readers and requires no prior knowledge of the English language. Winnie's World includes six environments, an active vocabulary of more than 500 words narrated in the child's own language, and eight engaging lessons addressing different topics – including numbers, family, colors, clothing, the human body, classroom, food and feelings.
English Academy is a new ELL Technologies program for the primary school market targeting students from eight to 12 years old. In the second quarter of 2015, the company announced that it had made significant advancements in the development of this product, which will complete its suite of products for K-12 students.
Scholar, Campus and Master
These programs are general English products that have been designed for young adults from junior middle school through to undergraduates (ages 13 to 22 years) but can extend to adult learners as well. They incorporate grammar into communicative learning activities and feature real world lessons that represent a wide variety of media genres. Each program features over 350 learning hours including extensive interactive listening activities
Market Opportunity & Expansion Goals
The global market for English language learning products and services is immense, accounting for $56.3 billion in 2014, according to Ambient Insight. In total, an estimated 1.6 billion people are learning English around the world, creating a significant opportunity for Lingo Media to promote rapid financial growth through both its legacy textbook operations and its innovative eLearning solutions.
Through Lingo Learning, Lingo Media has an established foothold in the Chinese education market, which is currently valued in excess of $200 billion, according to Market Research. In both the children's education and skills training sectors, practical skills, especially oral English, are in high demand as Chinese employers continue to emphasize English proficiency in the labor market.
By renewing its agreement to develop, co-publish, distribute and sell education programs with the People's Education Press, China's State Ministry of Education's publishing arm, the company has secured a noteworthy strategic advantage moving forward.
The global eLearning market is expected to reach $107 billion in 2015, up from just $32.1 billion in 2010. While educational markets in developing Asian nations – including India and China – are leading the way in terms of growth rate, a number of Latin American countries are demonstrating tremendous demand for English language solutions. By 2016, expenditures on digital English language learning products will grow to $260.9 million in Latin America.
Both Brazil and Colombia were ranked in the top 10 in terms of forecast growth in eLearning adoption by Ambient Insight. According to the Organization for Economic Co-operation and Development, Colombia's total education spending increased by more than 43 percent from 2007 to 2011. In 2015, Lingo Media positioned itself to capitalize on this market performance by securing agreements with government agencies in Colombia, as well as Peru and Mexico.
By carving out a sustainable foothold in the language learning markets of Latin America, Lingo Learning will look to capitalize on forecast growth in the region.
Sustainable growth of this caliber is driven by the leadership of an experienced management team with the knowledge to capitalize on the company's rising momentum.
Michael Kraft – President and Chief Executive Officer
Michael Kraft is a visionary and entrepreneur with more than 25 years of experience in sales, marketing and corporate management, with a strong record of success in both public and private companies. Kraft received his Bachelor of Arts in economics from York University (Toronto) in 1985. Under his stewardship, Lingo Media expanded its reach into the English language learning education market through a series of strategic acquisitions and transitioned from print-based publishing into online training. Kraft has established Lingo Media as a trusted leader in English language learning products and services sector in China with cumulative sales of more than 520 million product components over the past 10 years.
Gali Bar-Ziv – Chief Operating Officer
Gali Bar-Ziv brings more than 15 years of management and entrepreneurial experience, including financing, mergers and acquisitions, strategic planning, channel development and corporate development. Bar-Ziv profitably grew a sales, marketing and distribution start-up to sales growth of more than 700% year-over-year. Prior to that, he successfully turned around the largest service division of a $300 million financial services company. Bar-Ziv holds a Bachelor of Law (LL.B) from the University of London and an MBA in strategic and entrepreneurial studies from the Schulich School of Business in Toronto.
Khurram Qureshi – Chief Financial Officer
Khurram Qureshi brings over 25 years of experience in the field of accounting and corporate finance. Qureshi qualified as a chartered accountant in 1990 and has held senior positions with several small to medium size public companies. He has been a key member on several merger and acquisition teams.
Lingo Media Corporation
151 Bloor St. W, Suite 703
Canada M5S 1S4
Phone: (416) 927-7000
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