E-LEARNING web application EduFocal is setting its sights on Caribbean expansion after successfully entering the African market. The company, through its acquisitions of EduFocal Africa Inc and EduFocal Nigeria Limited, is gearing up to enhance its revenue streams in the coming financial years.

“We have some great opportunities in Nigeria, and I believe that is going to play a major part in our revenues for the next 24 months,” shared CEO and co-founder Gordon Swaby during an interview with the Jamaica Observer.

While acknowledging that substantial revenue from Africa might not materialise in the upcoming year, Swaby expressed optimism about a significant contribution in the latter part of 2024 going into 2025.

“It’s still early days, and we wouldn’t want to definitively say this will contribute to our revenues in 2024, but it is a possibility,” he added.

Swaby emphasised that the decision to enter the African market was sentimental, and EduFocal is actively exploring opportunities within the Caribbean region, with plans for expansion into Guyana, The Bahamas, and Trinidad, which are currently in their early stages.

In the financial quarter ending September 30, 2023, EduFocal demonstrated growth, with revenues reaching $257.6 million. This marked a substantial increase of $100.9 million, or 64 per cent, compared to the same period in 2022. The growth was attributed to EduFocal’s business and learn divisions, witnessing impressive revenue increases of 58 per cent and 38 per cent, respectively, compared to the corresponding third quarter in 2022.

Although EduFocal historically focused on PEP and exam preparation, the corporate learning division has emerged as a growth area, receiving aggressive investment. This division focuses on delivering learning content for organisations and providing a comprehensive learning management system. While witnessing growth in certain segments, EduFocal Academy, one of its online schools, was closed in June due to operating at a significant loss, as revealed by Swaby.

It also reported a total asset base closed at $375.7 million, reflecting a 19 per cent decrease compared to the corresponding period in 2022. The company offloaded $90 million in assets from $465.7 million.

“That has to do with amortisation and also the impairment loss that we suffered in 2022,” Swaby told the Caribbean Business Report, shedding light on the accounting. “It would have been a part of our revenue not just for 2022; I think it would be for 2021 and 2022 because we would have been carrying some receivables, hence the impairment for last year, and that’s why we had a loss. Once it’s impaired, it’s no longer on our balance sheet as a receivable and would have hit our P&L [profit and loss] as an expense.”

As EduFocal gears for future success, Swaby outlined a positive trajectory, anticipating a reversal of the expected credit loss (ECL). Its operating profit for the period under review soared to $83.8 million, marking a 185 per cent increase from the corresponding period in 2022. This improvement in profitability can be primarily attributed to EduFocal’s sustained revenue growth.

The third quarter report concluded on a positive note, with EduFocal closing the quarter profitably and reporting a net profit attributable to shareholders of $75.5 million. This signifies a substantial increase compared to the preceding quarter in 2022, reflecting the company’s commitment to continuous growth and financial success.