UAE school operators Taaleem Holdings announced its financial results for the nine-month period ending 31 May, 2023, with revenue increasing 30.3 per cent year-on-year to AED709.2m ($193.11m) and net profit up by 34.9 per cent to AED199.8m ($54.8m).
The strong performance was driven by 36.2 per cent enrolment growth (28,563 new students) and higher net finance income from undeployed IPO proceeds.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) was up 25.6 per cent to AED267.1m ($72.73m).
Taaleem revenue surge
The Dubai Financial Markets-listed company raised $204m through the IPO in November last year. It operates 26 schools across the UAE, offering British and American curricula as well as the International Baccalaureate.
The company also announced the launch of DBS Jumeira in September 2024, which will have a capacity of up to 1,900 students. It will also start constructing its fourth “Dubai British School”, which is planned to open in September 2025.
Revenue increase was primarily driven by the narrowing of the group’s capacity utilisation gap, the ramp up of new schools in the premium portfolio, and the expansion of the government public-private partnership vertical.
Taaleem also announced a 2.8 per cent average tuition fee increase at its premium schools to enhance the delivery of high-quality education services.
Khalid Al Tayer, Chairman of Taaleem, commented in a statement filed with DFM: “Our outstanding performance for the nine-month period reflects our dedication to providing high-quality education at an affordable price point and the ongoing execution of our Five-Year Strategy.
“We expect to continue to maintain our strong growth trajectory as we open four new Premium schools in the coming years and expand our participation in government public-private partnership initiatives.”
Taaleem also reported significant reduction in net debt to a negative AED545.7m ($149.49m). This is due to the company’s strong cash position which surpasses the bank borrowings.
The reduction in bank borrowings by AED156.8m ($42.7m) follows the early repayment of some bank debt, partially offset by new debt raised during the period to fund new development projects.
On its growth strategy, Taaleem said it would continue to focus on delivering its 5-Year Strategy which includes closing the capacity gap utilisation in its premium portfolio, ramping up new existing schools, developing four new greenfield schools across the UAE and seizing any suitable opportunity in the market that makes sense financially and from an education perspective.
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