Taaleem Holdings PJSC (Taaleem), one of the largest K-12 Premium school operators in the UAE, has released its financial results for the nine-month period ending on May 31, 2023.
The company, listed on the Dubai Financial Market (DFM), reported a consolidated revenue growth of 30.3% year-on-year (YoY), reaching AED 709.2 million. This growth was primarily attributed to the narrowing of the group's capacity utilization gap, the successful establishment of new schools in the Premium portfolio, and the expansion of the Government Public-Private Partnership vertical.
When considering like-for-like revenue, which excludes recent acquisitions and government partnership schools, Taaleem achieved a solid growth rate of 13.8% YoY, amounting to AED 617.9 million. This figure underscores the strong operational performance of the company. Taaleem's net profit margin for the period stood at 28.2%, representing a 1.0% YoY improvement compared to the previous year. Similarly, the like-for-like net profit margin saw a 2.4% YoY improvement, reaching 30.4% compared to the previous year's 28.0%. The growth in net profit is primarily attributed to the operational efficiency and increasing enrollment in the company's Premium schools portfolio.
Khalid Al Tayer, Chairman of Taaleem, commented,
“Our outstanding performance for the nine-month period reflects our dedication to providing high-quality education at an affordable price point and the ongoing execution of our 5-Year Strategy. Our success can be attributed to continued investments in exceptional people, educational services, and school infrastructure. We expect to continue to maintain our strong growth trajectory as we open in total four new Premium schools in the coming years and expand our participation in government public-private partnership initiatives."
Alan Williamson, Chief Executive Officer of Taaleem, commented,
"I am thrilled to announce Taaleem’s impressive financial results for the nine-month period ending on May 31, 2023, with revenue growth of 30.3% YoY and EBITDA increasing 25.6% YoY compared to the previous year. Our team's dedication to delivering high-quality education has been instrumental in driving our strong financial results for the period.
"With a record-breaking student count of 28,563 for the 2022/23 academic year, we have demonstrated the quality of our offering through our ability to attract and retain top talent and deliver exceptional education. We also remain fully on track with our 5-Year Strategy with the construction of the recently announced DBS Jumeira, a new 1,900 students capacity Dubai-based school, that is due to open in September 2024.”
Taaleem achieved strong operational growth and improved asset utilisation in its Premium Schools during the nine-month period that ended 31st May 2023. In the period under review, Taaleem achieved impressive growth in student enrolments and improved asset utilization. Enrolments increased by 36.2 %YoY compared to the previous year, to 28,563 students, demonstrating strong demand for Taaleem’s educational offering. Consequently, Taaleem's Premium Schools saw an improvement in asset utilization, narrowing the capacity-enrolment gap by 24.2% YoY compared to the previous year.
The company's progress in scaling up its Government Public-Private Partnership business is also noteworthy, with a significant reduction of 38.1% YoY compared to the previous year in the utilisation gap.
Delivering on growth strategy
In the coming quarters, Taaleem will continue to focus on further delivering its 5-Year Strategy which includes closing the capacity gap utilisation in its Premium portfolio, ramping up new existing schools, developing four new greenfield schools across the UAE and seizing any suitable opportunity in the market that makes sense financially and from an education perspective. Key short-term milestones include the completion of the construction of DBS Jumeira which will open in September 2024, and the upcoming launch of the construction of our fourth 'Dubai British School', planned to open in September 2025. In addition, Taaleem also announced a 2.8% weighted average tuition fee increase in Premium Schools for FY 2023/24 to enhance the delivery of high-quality education services.
News Source: Emirates News Agency