Alef Education Holding has announced its financial results for the period ending 30th September 2024. It marks Alef Education’s second set of results since its successful IPO in June 2024. Alef Education reported an 8 percent increase in adjusted profit before tax to AED379 million, driven by a solid revenue foundation from long-term contracts and a focus on achieving significant cost efficiencies throughout its operations.

Reinforcing Alef Education’s leading position as a trusted partner for governments and private schools in the UAE and beyond, the Company’s suite of innovative bespoke education solutions continues to garner strong demand.

A key factor in the Company’s revenues, which rose 2.5% to AED551 million, is the long-term investment-grade contract with the Abu Dhabi Department of Education and Knowledge (ADEK). The contract will continue to provide reliable revenue over the next seven years. The contract with ADEK provisions for a minimum of 80,000 students with a fixed fee per student.

Alef Education’s strategic focus on cost-cutting and operational efficiency led to significant savings, resulting in Adjusted EBITDA rising to AED395 million, marking a 6% year-on-year increase.

Geoffrey Alphonso, Chief Executive Officer of Alef Education, commented, “Our performance during the first nine months of 2024 underscores the resilience and strength of our business model. The consistent revenue growth, driven by long-term strategic contracts such as our agreement with ADEK, provides a solid foundation for continued stability and confidence in our operations. Strong operational efficiency and disciplined cost management have been key to our exceptional EBITDA and net profit growth, reinforcing our competitive position.

Looking ahead, we are excited about the opportunities to expand both organically and through strategic partnerships. Our commitment to creating value for our shareholders is underscored by our strong dividend program, ensuring attractive yields, as we remain focused on maximising shareholder value while making a meaningful impact on students globally.”

The Company demonstrated strong operational performance in the first nine months of 2024, successfully converting ~13 percent of its 1.2 million users to paid subscriptions, resulting in more than 150,000 paid users across the Alef Education platform. This achievement was fuelled by significant contract wins and a remarkable two-fold increase in B2B product sales.

Notably, the number of unique paid schools in the UAE doubled from 82 to 164 this year, reflecting our expanding reach in the private sector.