Alef Education announced an 8% rise in adjusted profit before tax, reaching Dh379 million for the period ending September 30, 2024. This growth was fueled by robust revenue from long-term contracts and strategic cost efficiencies across its operations.
The company's innovative education solutions continue to be in high demand, solidifying its position as a trusted partner for governments and private schools in the UAE and beyond. A significant contributor to the 2.5% revenue increase to Dh551 million was the long-term investment-grade contract with the Abu Dhabi Department of Education and Knowledge (ADEK).
This contract, which guarantees revenue over the next seven years, provisions for a minimum of 80,000 students with a fixed fee per student. Alef Education's focus on cost-cutting and operational efficiency led to substantial savings, with Adjusted Ebitda rising 6% year-on-year to Dh395 million.
Geoffrey Alphonso, CEO of Alef Education, highlighted the company's resilience and strength, attributing the performance to long-term contracts like the one with ADEK. He emphasized the importance of operational efficiency and cost management in driving Ebitda and net profit growth.
Looking forward, Alef Education is optimistic about organic growth and strategic partnerships. The company's strong dividend program underscores its commitment to creating value for shareholders, while also making a global impact on students.
In the first nine months of 2024, Alef Education successfully converted 13% of its 1.2 million users to paid subscriptions, resulting in over 150,000 paid users. This was driven by significant contract wins and a two-fold increase in B2B product sales. Notably, the number of unique paid schools in the UAE doubled from 82 to 164, reflecting the company's expanding reach in the private sector.
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