(eng)

In a significant financial achievement, the National Company for Learning & Education (NCLE) witnessed a substantial growth in profits, reaching SR 31.1 million by the end of the first quarter concluding on November 30, 2023. This marks a big increase from the 25.9 million riyals recorded during the corresponding period in 2022.

The surge in profits during the current quarter, compared to the same quarter of the previous year, can be attributed to several key factors. Profits of the National Company for Learning & Education, entrusted with establishing and managing educational institutions in the Kingdom, rose to SR 31.1 million by the end of the first quarter, ending on November 30, 2023, compared to SR 25.9 million in the same period of 2022.

This growth is primarily fueled by a 34% increase in revenues over the same quarter of the previous year, driven by a substantial 30% rise in student enrollment, from 21.6 thousand students to 28 thousand students during the current quarter.

Noteworthy contributors to this positive financial trajectory include the successful operation of two new educational campuses: Trbyha Namouthajiya International Schools in Alaridh district and Alghad Schools in the Alqayrawan district, both inaugurated at the beginning of the current academic year (2023-2024). Additionally, the acquisition of Alsalam Company for Education and Training played a pivotal role in elevating revenues and student numbers, with the entire shares of the company acquired in the second quarter of the previous year.

However, despite this growth, NCLE faced increased financing expenses during the current quarter compared to the same period of the previous year. This rise is attributed to the impact of lease contracts for the two school campuses opened at the beginning of the current year, as well as lease contracts for new projects underway in Hittin, Narjis, and Qurtuba districts in Riyadh. The financing impact of a loan associated with the Alsalam Company for Education & Training acquisition also contributed to these expenses.

Examining the quarter-to-quarter performance, NCLE continued its upward trajectory. Revenues witnessed a notable 23% increase over the previous quarter, attributed to a 20% rise in student enrollment, reaching 28 thousand students during the current quarter. The positive impact of the two new educational campuses in Alaridh and Alqayrawan districts played a pivotal role in sustaining the profit growth.

Despite facing increased financing expenses, the company managed to decrease advertising expenses during the current quarter, attributable to a commitment to marketing campaigns for the upcoming academic year.

However, a noteworthy increase in financing expenses during the current quarter compared to the previous quarter, despite an increase in returns achieved from short-term Islamic Murabaha, posed challenges.

Additionally, government grants and subsidies decreased during the current quarter compared to the previous quarter, as the company received annual support from the Ministry of Education in the preceding quarter.

Closing the period on a strong note, shareholders’ equity amounted to SR 735,753 million, compared to SR 678,793 million at the end of a similar period in the previous year. The total comprehensive income for the current quarter reached SR 31.03 million, surpassing the total comprehensive income for the same quarter of the previous year (SR 28.245 million) and the total comprehensive income of the previous quarter (SR 23.288 million).