By M. Marin
READ THE FULL EEIQ RESEARCH REPORT
Expanding in key markets
Elite Education Group (NASDAQ:EEIQ) has launched several growth initiatives in recent quarters to diversify and boost revenue and expand in key markets. EEIQ intends to own and operate academic institutions, develop new relationships with universities in the U.S., U.K. and Canada and expand its marketing to students in many geographic locations who are interested in study abroad, among other objectives.
❖ Own and operate academic institutions
❖ Develop new relationships with universities in the U.S., U.K. and Canada
❖ Expand its marketing to students in many geographic locations interested in study abroad
Management believes 'transfer pathway' programs have strong prospects
Through a recent transaction, EEIQ has acquired the underlying equity of Davis College, a career training college in Toledo, Ohio. The company believes that many students enrolled in two-year career training and education programs might want to transfer into traditional universities through 'transfer pathway' programs following completion of the two year program.
Consistent with this view, the company also acquired 80% of Vancouver, Canada-based EduGlobal College, which focuses on English educational programming. EduGlobal College recently partnered with Algoma University to facilitate transfer pathways for international students who want to complete post-secondary studies in Canada. Elite intends to pursue additional expansion opportunities within the Canadian education market and believes that Algoma could form the basis for a model that it can replicate.
Targeting further growth in the U.K…
In November, the company entered into an agreement with The Education Group, agreeing to recruit students from China for admission to the University of the West of Scotland's London campus. This is consistent with Elite's goals to expand its presence in the U.K.
The company expects its expanding suite of product offerings will make its services attractive for students in South America, Europe and Africa, as well as from China. Expanding its reach and marketing efforts is a core goal for Elite.
… while improving application, conversion and enrollment metrics are also positive
Applications and enrollments are on the rise. At the end of September 2021, 136 students had been admitted to the English Language Program at the MU Regional Campuses compared to 134 students for the same period of 2020. The conversion rate from application to enrollment was also higher, at 36.4% versus 25.7%. EEIQ believes its strong marketing efforts contributed to this increased conversion rate, which management notes was the highest since 2015.
SUBSCRIBE TO ZACKS SMALL CAP RESEARCH to receive our articles and reports emailed directly to you each morning. Please visit our website for additional information on Zacks SCR.
DISCLOSURE: Zacks SCR has received compensation from the issuer directly, from an investment manager, or from an investor relations consulting firm, engaged by the issuer, for providing research coverage for a period of no less than one year. Research articles, as seen here, are part of the service Zacks SCR provides and Zacks SCR receives quarterly payments totaling a maximum fee of up to $40,000 annually for these services provided to or regarding the issuer. Full Disclaimer HERE.
