Page 33 - ALEF EDUCATION PR REPORT - JULY 2024

7/31/24, 11:11 AM Alef Education Reports 7% Increase In H1 Profit To $67.8M
operations, it said in a statement on Tuesday.

The company's revenue for the first half of the year rose slightly by 1% to $96.4 million (AED 354
million), primarily driven by consistent income from a long-term contract with the Abu Dhabi

Department of Education and Knowledge (ADEK).

Alef Education achieved a 6% reduction in expenses, which totaled $30.5 million (AED 112

million) for the first half of the year.

The company's focus on cost control, coupled with stable revenue, resulted in a 4% year-on-year

increase in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) to $70.5

million (AED 259 million), with the EBITDA margin improving by two percentage points to an
industry-leading 73%.

"Our strong financial position and the stability of our contracts will enable the Company to continue

building on its successful track record and to pursue scale through organic and inorganic means that
will deliver further earnings growth and maximise shareholder value,” said Geoffrey Alphonso,

CEO of Alef Education.

Company updates

The ADEK contract ensures a minimum service to 80,000 students with a fixed fee per student.

With seven years remaining on the current agreement, discussions are underway to extend this
contract by an additional three years.

The company converted 14% of its total 1.1 million users to paid users, amounting to 151,000 paid

subscribers. New contract wins and a doubling of B2B product sales have contributed to this
growth.

In addition, Alef Education has signed a memorandum of understanding (MOU) with the
government of Kenya, setting the stage for future commercial agreements and expanding its

business-to-government (B2G) relationships beyond its core UAE market.

The company has made its first entry into the Kuwait market through a distribution agreement with
Aafaq Distribution, aiming to target markets with similar linguistic and cultural backgrounds to the

UAE.

Alef Education currently holds a 58% market share in the UAE, serving 232 out of 403 private

schools, according to its statement.

https://www.forbesmiddleeast.com/industry/education/alef-education-posts-7-rise-in-h1-profit-to-%24678m-on-higher-revenue 2/3