In 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 Abu Dhabi-based AI-powered learning solutions provider posted 7 per cent rise in H1 2024 adjusted profit before tax to Dh249 million.
On the back of stable revenue performance, with margin expansion to 70 per cent - substantially above industry benchmarks, and focus on cost efficiencies boosted Alef Education’s market-leading EBITDA margin to 73 per cent.
Alef Education said it remains committed to a Dh135 million dividend payout for its 20 per cent free float investors, and has accordingly approved an Dh67.5 million payout for H1 2024, implying an interim dividend per share of c. Dh0.05, with the current dividend yield exceeding 8 per cent.
"A key cornerstone of the Company’s revenues, which rose 1 per cent to Dh354 million in the first half of 2024, is the consistent and sticky revenue from Alef Education’s long-term contract with the Abu Dhabi Department of Education and Knowledge (ADEK)," the company said in a statement.
"The contract provides significant revenue visibility and reliability over the next seven years (the number of years remaining on the current contract), and Alef Education has initiated discussions with ADEK to extend it for a further three years. The contract with ADEK provisions for a minimum of 80,000 students, with a fixed fee per student.
"Reflecting its focus on prudent cost control, Alef Education made significant savings in the first half of 2024 due to major reductions in employee, software, legal, and professional spending, with expenses down 6 per cent year-on-year. Alef Education’s strong cost discipline coupled with stable revenue performance were critical in maintaining its outstanding adjusted EBITDA performance, which rose 4 per cent year-on-year to Dh259 million. Its industry-leading adjusted EBITDA margin expanded by two percentage points to 73 per cent in the first half."
The first half of 2024 saw Alef Education mark its first entry into the Kuwait 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.
