Page 31 - ALEF EDUCATION PR REPORT - JULY 2024

7/31/24, 11:11 AM Alef reports 1% revenue growth, but profit margin increases to 70% - Arabian Business: Latest News on the Middle East, Real Est…
The profit was driven by cost saving, with expenses down 6 percent from the
corresponding period last year, due to major reductions in employee, software, legal, and

professional spending. From $120 million in H1 2023, it was brought down to $112 million.

Adjusted EBITDA rose 4 percent year-on-year to AED259 million and adjusted EBITDA
margin expanded by two percentage points to 73 percent in the first half.

A key cornerstone of Alef’s revenues is the consistent and sticky revenue from its long-term

contract with the Abu Dhabi Department of Education and Knowledge (ADEK), which
provides significant revenue visibility and reliability over the next seven years. Alef has

already initiated discussions to extend it for a further three years. The ADEK contract
provisions for a minimum of 80,000 students, with a fixed fee per student.

Geoffrey Alphonso, Chief Executive Officer of Alef Education, commented: “Alef Education’s

solid first half results demonstrate our ability to consistently deliver robust financial
performance, which is underpinned by the predictability and stability that stems from our

long-term contracts and the confidence our partners have in our ability to improve

educational outcomes.”

Looking ahead, revenue growth is expected to intensify from a new two-year confidential
B2G client contract in the UAE, valued at AED31 million, to build and deliver values-based

Islamic content.

The strong demand for Alef Education’s initial public offering, oversubscribed 39 times,
underscores investor confidence in the company’s future growth.

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