“Ataa Educational” profits increased by 20% to 11.5 million riyals during Q2

The net profit after zakat and tax for Ataa Educational Company grew during the second quarter ending January 31, 2024 to 11.5 million riyals, compared to 9.5 million riyals in the same quarter of last year, by 20%. This came after today’s announcement of the preliminary financial results for the period ending January 31, 2024. ( 6 months).

Operating profit reached 25 million riyals in the second quarter, compared to 19 million riyals in the same quarter of the previous year, an increase of 34%.

Net profit after zakat and tax in the 6-month period amounted to 33.5 million riyals, compared to 30.6 million riyals in the same period last year, an increase of 9.5%.

Earnings per share in the current period amounted to 0.8 riyals, compared to 0.73 riyals in the same period last year.

The reason for the decrease in revenues during the current quarter compared to the same quarter of the previous year is:

A decrease in revenues from the employment and training sectors.

The reason for the increase in net profit during the current quarter compared to the same quarter last year is due to:

Acquisition of minority rights in (Al-Yasmeen – Al-Alsun – Gil Al-Majd) complexes and a decrease in operational costs by 2.5% compared to the same quarter of last year.

This is despite:

Financing costs increased by 27% compared to the same quarter of the previous year due to borrowing related to the purchase of minority rights in the (Jasmine – Al-Alsun – Gil Al-Majd) complexes, and the purchase of Arqa land, in addition to the rise in SIBOR prices.

The reason for the decrease in revenues during the current quarter compared to the previous quarter is:

Because additional discounts are given to parents

The reason for the decrease in net profit during the current quarter compared to the previous quarter is due to:

An increase in operating costs by 11% as a result of an increase in the salaries and wages item by 10% compared to the previous quarter, which includes a lower salaries and wages item in the month of August due to the dates of teachers’ return from vacation in the month of August.

The reason for the increase in revenues during the current period compared to the same period of the previous year is:

As a result of the increase in fees in some educational complexes

The reason for the increase in net profit during the current period compared to the same period last year is due to:

1- An increase in revenues by 1% and a decrease in operational costs by 3% compared to the same period last year.

2- Acquisition of minority rights in the complexes (Al-Yasmine – Al-Alsun – Generation of Glory).

This is despite:

An increase in financing costs by 35% compared to the same period of the previous year due to borrowing related to the purchase of minority rights in the (Jasmine – Al-Alsun – Generation of Majd) complexes, and the purchase of Arqa land, in addition to the rise in SIBOR prices.

The company said that some of the opening balances were adjusted as shown in the financial statements.