Meten Registers ~37% Revenue Decline In Q3, Margin Shrinks

Meten Holding Group Ltd (NASDAQ:METX) reported a third-quarter FY21 sales decline of 36.9% year-on-year, to RMB187.9 million ($29.2 million), missing the analyst consensus of $31.71 million. Meten said it is actively exploring emerging business opportunities in the field of Metaverse, blockchain, and cryptocurrency. It expects to develop and become a Metaverse technology company in the next one to two years.

• The gross profit for the quarter decreased 49.1% Y/Y to RMB64.0 million ($9.9 million), and the margin contracted 820 basis points to 34.1%.
• The gross billings for the quarter fell 41.8% Y/Y.
• Revenues from General adults English language training (ELT) service declined 64.3%, Online ELT rose 0.3%, and Junior ELT services decreased 58.7%.
• The operating loss for the quarter widened to RMB(166.8) million or $(25.9) million from RMB(59.8) million last year.
• Net loss for the quarter widened to RMB(175.3) million or $(27.2) million), compared to a net loss of RMB(39.7) million last year.
• The company held RMB279.9 million ($43.4 million) in cash and equivalents as of September 30, 2021.
• The company recently entered into a strategic cooperation agreement with AGM Group Holdings Inc (NASDAQ:AGMH) to accelerate the development of its blockchain and cryptocurrency mining business.
• Price Action: METX shares are trading lower by 11.7% at $0.382 on the last check Monday.