ABU DHABI: Alef Education Holding has reported its financial results for the period ending 30th June 2024. It marks Alef Education’s first set of results since its successful initial public offering on the Abu Dhabi Securities Exchange at the beginning of June 2024.
The Company recorded a 7% increase in adjusted profit before tax for the first six months of AED249 million compared to AED233 million a year earlier. This translates to an adjusted profit before tax margin of 70%, up by 4 percentage points compared to H1 2023, and remains substantially above industry benchmarks.
Robust top-line performance and continued cost management led to a 4% increase in Adjusted EBITDA to AED259 million in the first half. In comparison, costs declined by 6% to AED112 million.
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 stabilit
y that stems from our long-term contracts and the confidence our partners have in our ability to improve educational outcomes.
“The Company’s AI-powered products, which empower students to realise their potential, garner strong demand. We continue to harness cutting-edge technology to enhance our existing educational tools and create new bespoke solutions for our growing student and customer base.”
The Company maintained its operational excellence in the first half of 2024, converting 14% 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 rose twofold during this period.
The strong demand for Alef Education’s initial public offering, which was 39 times oversubscribed, underscored investor confidence in the Company’s future growth and proven track record of improving educational outcomes in the communities it serves.
The first half of 2024 saw Alef Education mark its first entry into the Kuwait market, signing a d
istribution 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.
Alef Education’s strategic growth plan is supported by an unlevered balance sheet and strong cash flow generation, enhancing its flexibility to tap 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.
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 significant 58% market share of the UAE market, serving 232 of the 403 private schools.
Source: Emirates News Agency
