Taaleem revenue grows 15% as enrolment surge

Taaleem announced its financial results for the nine-month period ending May 31, 2024, which showed double-digit growth across other key indicators like EBITDA and net profit.

With 32 schools in its portfolio, up by six from the same period last year, premium schools contributed AED735.5 million ($200.3 million), up 12.5 percent from the previous year, and accounted for 89 percent of operating revenues. Government partnerships saw significant top-line growth over the same period, with revenues rising 38.9 percent YoY to AED95.2 million ($25.9 million).

Taaleem’s enrollment and capacity

With the number of schools under its management growing, total student enrolment surged from 28,563 to 37,954, up 32.9 percent. However, Taaleem grew student capacity to 42,953 seats, up 27.1 percent from last year’s 33,797 seats. Despite the increase in capacity, implied utilisation improved by 3.8 percent YoY to 88.4 percent.

Consolidated EBITDA for the nine-month period was AED338.9 million ($92.3 million) a substantial increase of 26.9 percent from the corresponding period last year. This led to a margin increase of 3.8 percent YoY, reaching an impressive 40.8 percent, driven by Taaleem’s focus on optimising expenses and benefiting from growing economies of scale.

Net profit before tax was up 38.9 percent YoY to AED277.6 million ($75.5 million). Bottom-line growth was a result of the increase in EBITDA, coupled with the distribution of non-operating expenses over a wider revenue base. The increase in net finance income associated with Initial Public Offering (IPO) proceeds that have not yet been fully utilised, bolstered this performance.

Earlier this week, Taaleem announced that it has won the rights to bring the UK’s famous Harrow’s School to the Middle East.

Alan Williamson, CEO, Taaleem, commented: “We are thrilled to announce significant double-digit growth across our key financial indicators for the first nine months of the 2023/24 fiscal year.

“Our top-line growth for the period was significantly bolstered by an impressive increase in enrolment across all of our schools, particularly under our premium segment which saw its overall utilisation surge by 7.5 percent YoY. This achievement underscores our unwavering commitment to providing top-tier education and meeting the evolving needs of our students and their families.

“Furthermore, we are excited to share that we have entered into a master agreement with Harrow International Schools Limited (HISL), granting Taaleem the exclusive right to own and operate Harrow International Schools across the UAE, Saudi Arabia, Bahrain, Oman, Qatar, and Kuwait. Our partnership with this distinguished education provider marks a pivotal milestone in our expansion strategy, ensuring the delivery of exceptional educational experiences.”

Despite incurring additional debt during the first nine months of 2023/24 to facilitate the construction of Dubai British School Jumeira, which opens in the new school year, Taaleem has a negative net debt position of AED465.9 million ($126.9 million). The strategic utilisation of IPO proceeds has been instrumental in driving earnings growth and fortifying its cash reserves.

Capital expenditure (CapEx) grew 9.1 percent during the period. Expansionary CapEx rose 668.6 percent because of the construction of DBS Jumeira and the expansion of Greenfield International School (GIS).

Khalid Al Tayer, chairman, Taaleem, commented: “The past nine months have marked a period of robust growth for Taaleem. Looking ahead to the upcoming academic year, we are poised to add approximately 2,400 seats to our premium segment, with the construction Dubai British School Jumeira now complete, and the expansion of Greenfield International School nearing completion.

“With a robust portfolio encompassing 32 schools and serving over 37,954 students, we remain dedicated to nurturing young minds and championing sustainable practices.”