One on One Educational Services Limited CEO Ricardo Allen said the company continues to implement strategic initiatives, including launching proprietary technologies, geared toward generating “sustainable medium- to long-term revenues” that will drive shareholder value.

In an interview with the Jamaica Observer, the CEO said that it’s still early days for investors to expose massive profits given the company listed on the Junior Market of the Jamaica Stock Exchange in September last year. Allen was speaking against the background of a 42 per cent dip in second quarter profits for the period ended February 28, 2023.

One on One reported comprehensive income of $6.18 million compared to $10.68 million in corresponding period a year ago, despite a 17.5 per cent increase in quarterly revenues from $61.79 million in Q2 2022 to $72.59 million.

While the company’s direct cost fell during the period under review, driving up gross profit by approximately 33 per cent, its administrative and selling expenses rose significantly by 52 per cent and 168 per cent, respectively.

“This increase was primarily due to three main factors. Firstly, the company hired new staff to improve existing product offerings and initiate new product developments, leading to increased staff costs. Secondly, as the company went public, it incurred registration fees. Finally, the company invested more in advertising and promotion to attract new users to [its] Learning Management System (LMS) and to increase brand awareness,” Chairman Michael Bernard wrote in his report to shareholders.

Still, Allen pointed to the year-to-date growth of both One on One’s top and button lines.

Six-month revenues improved by 47 per cent to $153.45 million relative to $104.19 million as at February 28, 2021. Despite increases in administrative and selling expenses, net profit $17.41 million reflected an increase of 96 per cent.

Looking ahead, Allen said that direct costs will continue to increase as One on One continues to invest in new technology to drive and diversify revenue. However, he noted that its admin and selling expenses will remain relatively stable.

“In Q3 we’re going to be making significant announcements in the field of AI [artificial intelligence[,” Allen informed Business Observer, explaining that One on One will use ChatGPT to implement a “large language model…and create a truly personalised experience”.

He further outlined that the three major strategic objectives of the company include to “move the business away from being heavily dependent on [revenues from] governments and businesses”.

“We are expanding into the individual space…Our focus is to launch One Academy and other initiatives to drive our individual product lines,” the CEO further outlined.

Another major objective is content expansion, which Allen said will be achieved through the construction of the company’s content studio, which will be completed in the fourth quarter. This initiative, he pointed, will “position Jamaica” as a destination for “content development for e-learning”.

Notwithstanding the company’s thrust to build out its individual (B2C) revenue stream, Allen is bullish on leveraging One On One’s relationship with Community Services Foundation (CSF). Announced in February, the partnership with the Singaporean company will enable One on One to implement National Digital Education Eco-System across several new markets.

Already, One on One has relationships with the Government of The Bahamas “to power the digitalisation of the entire Bahamas education system”. The company also has a similar arrangement with the Ministry of Education in Jamaica.

In the meantime, Allen explained that preferred if shareholders “don’t worry about the short term”.

“Give us the space to invest the capital in such a way that we generate sustainable medium to long-term revenues for you,” he encouraged.