Page 65 - ALEF EDUCATION PR RPEORT MAY 2025

6/4/25, 8:36 AM Latest News
2025, the Company reported Revenues of AED 179.7 million, marking a 2% year-on-year (‘YoY’) increase.
This was primarily based on the stable contributions from the core UAE portfolio, Abu Dhabi Department of

Education and Knowledge (‘ADEK’) contract, and further driven by robust growth in other business and
government contracts outside of ADEK, locally and internationally. Alef Education continued to execute on its

growth strategy during Q1 2025, with a strong focus on revenue diversification.
EBITDA rose 2% to AED 132.8 million in Q1 2025, with a market-leading margin of 74%. Net profit reached

AED 115.3 million, reflecting a 2% YoY increase, supported by consistent revenue growth and a strong 64%
margin, underscoring Alef Education’s ongoing commitment to cost discipline and operational optimization.

Alef Education’s strong, unlevered balance sheet, solid financial foundation, and robust cash flow generation
continue to support its growth strategy. With AED 402.6 million in cash, no debt and a low liabilities-to-assets
ratio of 18%, the Company is well-positioned to fund growth ambitions, while sustaining consistent dividend

distributions.
A Core Foundation Further Enhanced by Strategic Growth & Strategic Alliances

The Company’s recent contract extension with ADEK provides significant revenue visibility until 2033,
provisioning for a minimum of 80,000 students with a fixed fee per student. While the ADEK contract
constitutes the core of Alef Education’s business, the Company is actively pursuing an opportunistic global

growth strategy, particularly considering high-margin and value accretive opportunities. To support its goals of
geographic expansion, revenue diversification, and customer and product portfolio growth, Alef Education

secured a substantial pipeline of high-value leads across both public and private sectors in the MENA region
and internationally during Q1 2025.

Supporting its focus on deepening public sector partnerships, Alef Education marks expansion into Morocco
in support of the Education Reform Plan 2022–2026, and progress on the MOU with Nahdet Misr to

collaborate across the GCC, Levant, and North Africa. Alef Education strengthened its footprint in Indonesia
in Q1 2025, aligning with national digital education goals through high-level ministerial talks aimed at long-
term collaboration. Strategic partnerships were also forged to advance human capital development and equip

students with future-ready skills. Additionally, the Company engaged in ongoing strategic dialogue with the
Senegalese government about a potential long-term collaboration, following the visit of Senegal’s President

to Alef Education in November 2024.
Continuous Innovation Transforming Learning Outcomes

To meet rising demand for its expanding product portfolio, Alef Education is developing new variants of Alef
Pathways and enhancing its Arabic learning offerings with additional content and resources.

As part of its innovation agenda, Alef Education partnered with MetaMetrics® to develop Miqyas Al Dhad, the
region’s first Arabic reading scale aimed at improving literacy for Grade 1–12 Arabic speakers. Created in
collaboration with regional ministries, the initiative supports Alef Education’s growth strategy by opening new,

sustainable revenue streams in Arabic language proficiency. Now 86% complete, Miqyas Al Dhad has
engaged over 110,000 students across nine countries, with seven MOUs signed to date. The launch is on

track for Q3 2025.

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