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March 3, 2024

Dubai’s Taaleem posts $54.5m profit since IPO

Dubai’s Taaleem Holdings said its net profit in the nine months to the end of May 2023 surged by 34.9 per cent to $54.5m (Dhs199.8m), driven by a surge in student enrollments and higher net finance income from the undeployed initial public offering (IPO) proceeds. Taaleem raised $204m from its IPO on the Dubai Financial Markets in November 2022.

The school operator added 28,563 new students for the 2022/23 academic year, a 36.2 per cent year-on-year (YoY) increase in enrolments amid an increase in the reflecting an increase in the country’s population.

“The company’s net profit margin is 28.2 per cent compared to 27.2 per cent the previous year, showing a +1 per cent YoY improvement,” Taaleem said in a bourse filing while noting that the primary driver of net profit growth is its premium schools’ strong focus on operational efficiency and rising enrolment.

Taaleem also announced a 2.8 per cent weighted average tuition fee increase at its premium schools to enhance the delivery of high-quality education services.

 

The Dubai-listed firm said its revenues surged by 30.3 per cent YoY to Dhs709.2m in the nine months to the end of May, due to the narrowing of the school operator’s capacity utilisation gap, the ramp-up of new schools in the premium portfolio and the expansion of the government public-private partnership vertical.

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The group’s earnings before interest, taxes, depreciation and amortisation (EBITDA) jumped 25.6 per cent YoY to Dhs267.1m compared to the same period a year earlier, driven by higher enrolments and further operational efficiency.

Taaleem’s net debt in 9M 2023 plunged by a record 622.5 per cent Dhs545.7m as of May 2023, owing to the company’s strong cash position which surpasses the bank borrowings.

“The reduction in bank borrowings by Dhs156.8m follows the early repayment of some bank debt, partially offset by new debt raised during the period to fund new development projects,” the company said in a statement.

Taaleem’s growth strategy

Meanwhile, Taaleem said it will continue to focus on delivering its five-year strategy in the coming quarters, which includes closing the capacity gap utilisation in its premium portfolio, ramping up new existing schools and developing four new greenfield schools across the UAE.

The company also looks to seize any opportunities in the market that makes sense financially and from an education perspective. It completed the construction of DBS Jumeira, which will open in September 2024 and its fourth ‘Dubai British School’, which is set to open its doors for business in September 2025.

Earlier in June, National Bonds Company acquired an additional 5 per cent stake in the Taaleem, making the Sharia-compliant investment firm the largest shareholder in the company with a 22 per cent stake.

Founded in 2004, the company operates 26 schools across the UAE, offering British and American curricula as well as the International Baccalaureate.