Business

Brazilian distance learning platform increased by 54% during the COVID-19 pandemic

The expansion of the student base in the non-classroom model helped the group offset losses of approximately R$ 450 million

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  • Investments by Yduqs to improve its distance learning platform had a good impact among students precisely during the term of social isolation measures, raising the average level of approval by 17%;
  • Now, the group expects to have 1 million students on its distance learning platform in the next two years.

One of the largest education groups in Brazil, Yduqs had a 54% increase in the distance learning students in the second half of 2020 compared to the previous year, reaching 380 thousand students in the distance education model. Therefore, the group expects to have 1 million students on its distance learning platform in the next two years.

According to Eduardo Parente, CEO of Yduqs, investments to improve the content of the distance learning platform made in 2019 began to have a good impact among students precisely during the term of social isolation measures, raising the average level of approval by 17%.

Now, in addition to increasing its own production of teaching material, Yduqs plans to open another 500 distance learning centers in 2021, to 2.000 Brazilian cities.

READ ALSO: What will the edtech sector in Brazil look like after the pandemic?

Besides that, the expansion of the student base in distance education helped the group to recover losses of approximately BRL 450 million resulting from the end of the federal subsidy program for higher education (FIES), which led thousands of students to seek distance learning courses, which are cheaper, to continue studying.

Distance learning platform recovers business

After seeing its shares melt around 60% last year, due to the effects of the pandemic, Yduqs has halved those losses in recent months, as banks and managers have issued more optimistic opinions for the company in the medium term.

Bradesco and XP elected Yduqs as the main choice in the segment in the country, punctuating expectations of growth supported by EAD.

READ ALSO: Teleworking and e-learning tools surged 324% and 60% in Latin America

Yduqs also plans to grow via acquisitions to expand its face-to-face network, with an emphasis on São Paulo and the country’s Midwest and South regions. The expansion mix of EAD with non-organic growth will allow revenues to increase again in 2021, after having been almost stable last year, says Parente to Reuters.

Yduqs announces its fourth quarter results on March 17 and discusses the figures with analysts and investors in a conference call the next day.

Translated by LABS.

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