Page 48 - ALEF EDUCATION PR REPORT

Page 48 - ALEF EDUCATION PR REPORT - JULY 2024

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7/31/24, 11:14 AM Abu Dhabi’s Alef Education sees Q2 net profit slip to $31mln

Quarterly revenues from contracts with customers, for the period ending 30 June 2024, rose to AED
177.5 million versus 175.7 million reported a year ago. The company attributed the revenue uptick to its
long-term contract with the Abu Dhabi Department of Education and Knowledge (ADEK) over the next
seven years.

In its first reported financial results since its initial public offering (IPO) on the Abu Dhabi Securities

Exchange (ADX) in June, Alef Education said it remained committed to an AED 135 million dividend
payout for its 20% free float investors and has approved an AED 67.5 million payout for H1 2024.

Alef Education cited “strong cost discipline coupled with stable revenue performance” for its adjusted
EBITDA, which rose 4% year-on-year to AED 259 million.

The company said it has initiated discussions with ADEK to extend its contract with the government

entity for a further three years. The contract provisions for a minimum of 80,000 students, with a fixed fee
per student.

It said it is focused on revenue growth and is looking to intensify with the emergence of revenue from a
new two-year confidential B2G client contract in the UAE, valued at AED 31 million, “to build and deliver
values-based Islamic content.”

Alef said it is also in pursuit of inorganic growth through a pipeline of potential M&A activities across
target regions and focus areas.

(Writing by Bindu Rai, editing by Brinda Darasha)

bindu.rai@lseg.com