Kneo Media up 27% after expanding U.S. rollout of online educational game


Online educational game developer Kneo Media gained 27% after expanding to five new US sites.

Kneo (ASX:KNM) manufactures educational games for special education students in the United States.

After proving their worth in the New York City public school system, Kneo is now expanding to Newark and Buffalo, with three more U.S. states to come.

Shares in Kneo closed at 14c on Thursday, valuing the company at $70m.

Kneo’s flagship game, KneoWorld, is set in a futuristic world where students engage in numeracy, literacy, science, arts, and memory tasks through a game environment.

Detailed feedback is then passed on to teachers to monitor performance and enable further targeting.

Kneo actions over the last six months.  Source: Investing.com
Kneo actions over the last six months. Source: Investing.com

“Game-based learning is an integral part of early childhood education. Growing education markets, combined with advances in mobile devices and connectivity, will continue to accelerate innovation, adoption and affordability of our products around the world,” Kneo told shareholders.

The latest iteration, KneoWorld Galaxy Rising, is a 24-episode series that takes kids on an epic adventure where they follow history and solve puzzles to help child explorers relocate the abandoned Earth and save humanity.

The company derives its revenue from a licensing fee of US$50 per student. With 6,700 licenses initially sold at the end of fiscal 2017 and 4,200 sold in the last four weeks of the year, they say they are well positioned for growth.

In New York alone, there are 2,300 schools with 1.25 million students, 220,000 of whom have special needs.

Kneo raised $3.85m in October at 4.5c.

Building on their traction for New York public schools, the company hopes to tap into the Australian and Philippine education markets.

Last quarter, they had sales of $8,000 and had $233,000 in the bank at the end of the period.

They expect to spend $400,000 in the quarter through December.

Earlier this month, the company named prominent New York educators Dr. Mary McInerney and Keith Wright to lead their move to other American schools.

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