Ataa Educational reports 77% profit decline in Q2

Ataa Educational Co. has reported that its profits after zakat and tax dropped 77% to SR 1.47 million in Q2 ended in January 2022 from SR 6.4 million a year earlier.

Operational profit of the Saudi company rose 2% to SR 11.8 million in Q2 from SR 11.6 million, while gross profit jumped 44% to SR 24 million from SR 17 million.

Earnings per share (EPS) hiked to SR 1.7 from SR 0.28 during the same period in 2021.

Lower profit was due to:

1- Revenues increase by 112% compared to last year, facing higher operational cost by 137% as a result of adding the acquired companies (Al Wasat National Schools Company for Education and Training – Al Elm International Schools Company – The Arabian Group for Education and Training Holding Company) and the return of students, which resulted in an increase in the number by 15 thousand Student compared to last year.

2- Administrative expenses increase by 145% compared to last year

This is as a result of the consolidation of the financial statements with the acquired companies this year (Al Wasat National Schools for Education and Training Company – Al Elm International Schools Company – The Arabian Group for Education and Training Holding Company).

3- Higher financing costs by 103% compared to last year due to the borrowing related to the purchasing of Al-Elm International Schools, the Arabian Group for Education and Training, as well as the consolidation of the financial statements with them.