Page 69 - ALEF EDUCATION PR REPORT - JULY 2024

Alef Education Reports 70% Profit Margin in H1

2024 | EdTech Financial Analysis

Explore Alef Education’s impressive H1 2024 financial results, featuring a 70% profit margin and
7% growth in adjusted profit. Gain insights into the EdTech sector’s performance.

Vadim Kouznetsov
30th Jul 2024

3 minutes

Abu Dhabi Securities Exchange, ADEK contract, Alef Education, B2G education contracts,
business, EdTech financials, EdTech investor insights, education technology, finance, financial
analysis, investing, News, profit margin growth, stocks, UAE education sector

In a testament to its operational efficiency and strategic positioning in the education technology
sector, Abu Dhabi-based Alef Education Holding has unveiled impressive financial results for the
first half of 2024. This marks the company’s inaugural financial report since its successful initial
public offering (IPO) and listing on the Abu Dhabi Securities Exchange in June 2024.

Key Financial Highlights
• Revenue: AED354 million ($96.4 million), up 1% year-on-year

• Adjusted Profit Before Tax: AED249 million ($67.8 million), a 7% increase

• Profit Margin: Expanded to an impressive 70%

• Adjusted EBITDA: Rose 4% to AED259 million
• Adjusted EBITDA Margin: Expanded by two percentage points to 73%

Driving Factors Behind Profit Growth

Alef Education’s robust profit growth, despite modest revenue gains, can be attributed to several
key factors:

1. Cost Optimization: The company achieved a significant 6% reduction in expenses
compared to H1 2023, primarily through:
o Reduced employee costs

o Lower software expenses

o Decreased legal and professional spending

2. Long-term Contracts: A cornerstone of Alef’s financial stability is its enduring contract
with the Abu Dhabi Department of Education and Knowledge (ADEK). This agreement
provides:

o Consistent and reliable revenue streams

o Visibility for the next seven years

https://blog.jobxdubai.com/2024/07/30/alef-education-reports-h1-2024/