Abu Dhabi’s Alef Education Holding has announced its financial results for the period ending June 30th, 2024. This marks Alef Education’s inaugural set of financial statements since its successful initial public offering on the Abu Dhabi Securities Exchange at the start of June 2024.
The company reported a 7 percent increase in adjusted profit before tax for the first six months, reaching AED249 million ($67.79 million) compared to AED233 million ($63.43 million) a year earlier. This translates to an adjusted profit before tax margin of 70 percent, up by 4 percentage points from H1 2023, and remains substantially above industry benchmarks.
Robust top-line performance and disciplined cost management led to a 4 percent increase in Adjusted EBITDA to AED259 million in the first half. In contrast, expenses declined by 6 percent to AED112 million.
We’re happy to share our first set of financial results as a public company, delivering industry-leading profitability margins and strong revenue performance. We remain focused on executing against our growth strategy and delivering sustainable shareholder returns through our… pic.twitter.com/JFogwjlGUw
— Alef Education (@AlefEducation) July 30, 2024
AI-powered products drive strong demand
Geoffrey Alphonso, chief executive officer of Alef Education, commented, “Alef Education’s solid first half results demonstrate our ability to consistently deliver robust financial performance, which is underpinned by the predictability and stability that stems from our long-term contracts and the confidence our partners have in our ability to drive improved educational outcomes.
“The company’s AI-powered products, designed to empower students to realize their full potential, continue to garner strong demand. We remain committed to harnessing cutting-edge technology to enhance our existing educational tools and create new bespoke solutions for our growing student and customer base.”
Read more: Abu Dhabi’s Alef Education’s ADX IPO draws $20 billion in orders, 39x oversubscription
User growth, successful IPO
Alef Education maintained its operational excellence in the first half of 2024, converting 14 percent of its total 1.1 million users to paid users—151,000 across the Alef Education platform—driven by new contract wins and B2B product sales, which doubled during this period.
Furthermore, the overwhelming investor demand for Alef Education’s initial public offering, which was 39 times oversubscribed, underscored confidence in the company’s future growth and proven track record of improving educational outcomes in the communities it serves.
Expansion into Kuwait market
Also, the first half of 2024 saw Alef Education mark its inaugural entry into the Kuwaiti market, signing a distribution agreement with Aafaq Distribution Co., a leading provider of educational resources, in line with the Group’s strategy to target markets that share linguistic, cultural, and pedagogical similarities to its core UAE market.
Growth pipeline
Alef Education’s strategic growth plan is bolstered by an unlevered balance sheet and strong cash flow generation, enhancing its flexibility to pursue attractive inorganic growth opportunities that drive scale.
The company has a sizeable pipeline of deals for the second half of 2024 and is in ongoing discussions with several governments to expand its offering across its high-growth target markets.
Targeting private school market
Moreover, Alef Education is looking to significantly grow in the private school market by introducing new subjects and catering to younger students. The company has already captured a substantial 58 percent market share of the UAE market, serving 232 of the 403 private schools.
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