‎“Ataa” profits jump 844% during Q2, to SR9.5 mln

Ataa Educational Company revealed an increase in net profit after zakat and tax during the second quarter to 9.5 million riyals, compared to 1 million riyals in the same quarter of last year, by 843.8%. This came after today’s announcement of the preliminary financial results for the period ending in 01-2023- 31 (six months).

The operational profit amounted to 18.7 million riyals during the second quarter, compared to 8.5 million riyals in the same quarter of the previous year, with a growth of 119.8%.

The net profit after zakat and tax during the 6-month period amounted to 30.6 million riyals, compared to 52.4 million riyals in the same period last year, a decrease of 42%.

The total shareholders’ equity “without minority rights” amounted to 848 million riyals in the current period, compared to 772.4 million riyals in the same period last year, an increase of 9.2%.

Earnings per share in the current period reached 0.73 riyals, compared to 1.25 riyals in the same period last year.

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

1- The increase in the number of students by 14% from 39.3 thousand to 44.9 thousand male / female students resulted in an increase in revenues by 25% compared to last year, which is mainly due to the increase in the number of students enrolled in the schools affiliated to the company, and the acquisition of Nabaa Educational Company

In addition to the increase in tuition fees compared to the previous year, which included exceptional discounts related to the repercussions of the Corona pandemic, which the company announced at the time

And this is despite the increase in operating costs by 21% and the return on consolidating the financial statements with the acquired Nabaa Educational Company, in addition to the costs resulting from the attendance return of the preparatory and primary sections.

2- An increase in government grant revenues by 65% as a result of the increase in revenues received from government initiatives

3- An increase in other revenues by 39% as a result of the attendance return of students in the primary grades, and the consolidation of the financial statements with the acquired Nabaa Educational Company.

4- An increase in marketing expenses by 300% compared to last year as a result of the company’s campaign for the new year.

5- An increase in financing costs by 9% compared to last year due to borrowing related to the purchase of the Arab Group for Education and Training, in addition to the increase in SIBOR prices.

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

1- A decrease in revenues by 0.6% due to the granting of additional discounts related to the process of collecting tuition fees.

2- An increase in operating expenses by 10% as a result of an increase in the salaries and wages item by 22% compared to the previous quarter, due to the decrease in August salaries due to the teachers’ return dates from their vacations, in addition to the acquisition of Nabaa Educational Company.

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

Evidence of non-recurring gains in the similar period resulting from the acquisition of the Arab Group Company for Education and Training (Note No. 11 in the budget) at a value of 38.1 million riyals.

By excluding the effect of these gains, considering that they are non-recurring and not a result of the activity, there will be an increase in the net profit for the current period by 114% compared to the similar period, due to the following:

1- The increase in the number of students by 14% from 39.3 thousand to 44.9 thousand male/female students resulted in an increase in revenues by 23% compared to the same period, which is mainly due to the increase in the number of students enrolled in the schools affiliated with the company, and the acquisition of Nabaa Educational Company

In addition to the increase in tuition fees compared to the previous year as a result of the company raising tuition fees in addition to canceling discounts related to distance education that the company was granting during the repercussions of the Corona pandemic (announced by the company at the time).

And this is despite the increase in operating costs by 21% and the return on consolidating the financial statements with the acquired Nabaa Educational Company, in addition to the costs resulting from the attendance return of the preparatory and primary departments.

2- An increase in government grant revenues by 96% as a result of the increase in revenues received from government initiatives

3- An increase in other revenues by 33% as a result of the attendance return of students in the primary grades, and the consolidation of the financial statements with the acquired Nabaa Educational Company.

4- An increase in marketing expenses by 364% compared to last year as a result of the company’s campaign for the new year.

5- An increase in financing costs by 13% over last year due to borrowing related to the purchase of the Arab Group for Education and Training, in addition to the increase in SIBOR prices.