Learning Academy, a leading private education company in Saudi Arabia, announced strong financial results for the first half of its 2023-2024 fiscal year. The company recorded a significant 18% increase in net profit, reaching SAR 14.2 million for the period ending December 31, 2023, compared to SAR 12 million for the same period of the previous year.
Financial performance details and reasons for growth
According to the official statement published by the company on the Saudi Stock Exchange (Tadawul), this positive increase in profits is primarily attributed to higher operating revenues. This growth reflects the company's ability to attract more students and improve its operational efficiency, in addition to expanding its educational services to meet the growing demand in the Saudi market. The company's strong financial performance demonstrates its resilience and ability to adapt to market changes, achieving sustainable growth that reinforces its position as a key player in the education sector.
General context and importance of the education sector in the Kingdom
This announcement comes at a time when the private education sector in Saudi Arabia is witnessing unprecedented attention, as it is a key pillar in achieving the goals of Vision 2030. The Vision aims to develop human capital and encourage the private sector to play a greater role in the education system, thus opening up vast growth opportunities for companies like the Learning Academy. The company was established to be an active contributor to providing high-quality educational services and to benefit from the stimulating investment environment provided by the government to support this vital sector.
Dividend payouts and investor confidence
To bolster shareholder confidence, the Board of Directors of Learning Academy decided to distribute interim cash dividends for the first half of the fiscal year totaling SAR 13.5 million. The company clarified that the number of shares eligible for dividends is 135 million, at a rate of SAR 0.1 per share, representing 10% of the share's par value. The entitlement date for the dividends has been set for April 16, 2024, with distribution scheduled for April 28, 2024. This move reflects the company's financial stability and its policy of delivering attractive returns for investors, further enhancing the stock's appeal in the financial market.
Expected impact and future outlook
These positive results are expected to have a direct impact on the company's stock performance in the financial market and bolster investor confidence in its expansion strategy. In the long term, the continued growth in Learning Academy's profits indicates its significant potential to contribute to the development of the Saudi education sector and capitalize on the promising opportunities offered by the national economy. With its ongoing focus on educational quality and innovation, the company appears well-positioned to continue its growth trajectory and achieve further successes in the future.
