Dubai: The Dubai-based school operator Taaleem saw net profit zoom 34.9 per cent for the nine months to end May, totalling Dh199.8 million and helped by a 36.2 per cent year-on-year increase in student enrolments. At the end of May, the number of students in the various schools operated and owned by the company were 28,563.
The company, which is listed on DFM, has seen its stock price pick up significant investor attention in recent weeks, helped by National Bonds announcing a 5 per cent stake buy in it.
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According to Khalid Al Tayer, Chairman, “Our outstanding performance for the nine-month period reflects our dedication to providing high-quality education at an affordable price point and the ongoing execution of our 5-Year Strategy. We expect to continue to maintain our strong growth trajectory as we open in total four new Premium schools in the coming years and expand our participation in government public-private partnership initiatives."
Now, these profits derived from a solid 30.3 per cent growth on the revenue side, to Dh709.2 million. The ‘revenue increase was primarily driven by the narrowing of the group’s capacity utilisation gap, the ramp up of new schools in the premium portfolio, and the expansion of the public-private partnership vertical,” said the company in a statement.
Taaleem said profits also were helped by the higher net finance income coming from non-deployed IPO proceeds.
“With a record-breaking student count of 28,563 for the 2022-23 academic year, we have demonstrated the quality of our offering through our ability to attract and retain top talent and deliver exceptional education,” said Alan Williamson, CEO.
“We also remain fully on track with our 5-Year Strategy with the construction of the recently announced DBS Jumeira, a new 1,900 students capacity Dubai-based school, that is to open in September 2024.”
Margin gains
The company's EBITDA margin improved by 1.3 per cent on a like-for-like basis compared to the previous year, where it reached 40.4 per cent, demonstrating its ‘strong focus on operational efficiency’.
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