(Yicai Global) Nov. 24 -- Shares in China Online Education Group, also known as 51Talk, jumped 6.33 percent yesterday as the English language educator reported net profit for the third quarter was up more than seven times from the same period last year as the Covid-19 pandemic drives demand for remote schooling.

Beijing-based 51Talk’s share price [NYSE:COE] closed at USD27.89, giving it a market capitalization of USD597 million.

The firm raked in net profit of CNY31.6 million (USD4.8 million) in the three months ended Sept. 30, a huge improvement from the CNY5.8 million (USD881,000) loss a year earlier and the fourth straight quarter that it has been in the black, according to the company’s latest earnings report released yesterday. Revenue was up 31.8 percent to CNY539 million (USD81.9 million).

51Talk expects to continue to do well in the fourth quarter and is anticipating revenue to rise by between 32.2 percent and 33.4 percent year on year to between CNY525 million and CNY530 million, the report said.

51Talk's sound performance can be attributed to the firm’s strategy of expanding its K-12 one-on-one online tutoring model in lower tier Chinese cities and the public's increased acceptance of e-teaching during the pandemic, founder and Chief Executive Officer Jack Huang said earlier.

The Covid-19 pandemic has given the firm an unexpected boost. Student numbers swelled 30.8 percent in the third quarter year on year to 338,000. Revenue from its K-12 classes soared 84.8 percent to CNY472 million (USD71.7 million), accounting for 87.6 percent of all earnings.

Classroom-based educators have also experienced a turn around as the pandemic wanes. After-school English language tutor Rise Education made a profit of CNY28 million (USD4.2 million) in the third quarter, compared to a CNY58 million loss in the second quarter, the firm said in its latest earnings report released on Nov. 13. All branches had reopened by late September, it added.

Editors: Dou Shicong, Kim Taylor