According to the company’s statement on the Saudi Stock Exchange website, the 18% increase in net profit during the current quarter compared to the same quarter of the previous year is due to a 15% growth in revenues for the current quarter compared to the same quarter of the previous year.
Financing expenses also increased during the current quarter compared to the same quarter of the previous year as a result of loans used to finance part of the purchase price of Al Rabee land in Riyadh and Abhar Al Shamaliyah land in Jeddah, in addition to the effect of the land lease contract for the Dhahrat Laban project under construction in Riyadh.
It should be noted that the current quarter revenue for this year was calculated on the basis of 90 days out of the total 314 days of the 2025/2026 academic year, compared to the same quarter of the previous year which was calculated on the basis of 90 days out of the total 321 days of the 2024/2025 academic year, which positively affected the growth rate of net profit for the current quarter.
The 83% increase in net profit during the current quarter compared to the previous quarter is primarily due to a 15% increase in revenue, resulting from a difference in the number of days recognized for tuition revenue between the two periods. Additionally, advertising expenses decreased during the current quarter, as the previous quarter included marketing campaign expenses related to pre-academic registration.
Despite revenues increasing by 11% during the current period (6 months) compared to the same period of the previous year, net profit increased by 3% compared to the same period of the previous year.
This is due to the difference in the number of days recognized for tuition revenue between the two periods. In contrast, operating costs and expenses are fully charged to the current period (180 days) regardless of the number of days recognized for tuition revenue, which has impacted the growth rate of net income for the current period.
The item of government grants and subsidies witnessed a decrease during the current period compared to the same period of the previous year, and this is attributed to the decrease in the item of wage support provided by the Human Resources Development Fund.
In addition to the increased advertising and publicity expenses during the current period, due to the marketing campaigns for the current academic year being mainly concentrated in August, while last year's marketing campaigns were distributed between July and August, which led to their impact extending to two financial periods.
The current period also witnessed the creation of a provision for expected credit losses, as a result of the higher ratio of receivables with older credit maturities compared to the same period of the previous year.
It should be noted that financing expenses increased during the current period compared to the same period of the previous year as a result of loans used to finance part of the purchase price of Al Rabee land in Riyadh and Abhar Al Shamaliyah land in Jeddah, in addition to the effect of the land lease contract for the Dhahrat Laban project under construction in Riyadh.
