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The Abu Dhabi-listed edtech firm Alef Education saw its Q2 net profit slip to 113 million UAE dirhams ($31 million), down from the AED 170 million reported in June 2023.
Quarterly revenues from contracts with customers, for the period ending 30 June 2024, rose to AED 177.5 million versus 175.7 million reported a year ago. The company attributed the revenue uptick to its long-term contract with the Abu Dhabi Department of Education and Knowledge (ADEK) over the next seven years.
In its first reported financial results since its initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX) in June, Alef Education said it remained committed to an AED 135 million dividend payout for its 20% free float investors and has approved an AED 67.5 million payout for H1 2024.
Alef Education cited “strong cost discipline coupled with stable revenue performance” for its adjusted EBITDA, which rose 4% year-on-year to AED 259 million.
The company said it has initiated discussions with ADEK to extend its contract with the government entity for a further three years. The contract provisions for a minimum of 80,000 students, with a fixed fee per student.
It said it is focused on revenue growth and is looking to intensify with the emergence of revenue from a new two-year confidential B2G client contract in the UAE, valued at AED 31 million, “to build and deliver values-based Islamic content.”
Alef said it is also in pursuit of inorganic growth through a pipeline of potential M&A activities across target regions and focus areas.
(Writing by Bindu Rai, editing by Brinda Darasha)