Alef Education has reported a 7% rise in adjusted profit before tax to Dh249 million for the first half of 2024. The surge was attributed to a stable revenue base and a focus on cost efficiencies. The company’s adjusted EBITDA margin expanded to 73%, driven by strong revenue performance and cost reductions.
Alef Education’s revenue for the first half of 2024 increased by 1% to Dh354 million, primarily due to long-term contracts, including a significant contract with the Abu Dhabi Department of Education and Knowledge (ADEK). This contract, which accounts for a substantial portion of Alef’s revenue, covers a minimum of 80,000 students and provides revenue visibility for the next seven years. Discussions are underway to extend this contract for an additional three years.
Operating expenses decreased by 6% year-on-year to Dh112 million, reflecting significant savings in employee, software, legal, and professional spending. The adjusted EBITDA rose 4% to Dh259 million, maintaining an EBITDA margin of 73%.
According to the stock market filings, Alef Education secured a new confidential client contract in the UAE, valued at Dh31 million, and entered into a memorandum of understanding with the Kenyan government. The company also signed a reseller partnership agreement with a regional partner, marking its entry into Kuwait.
Dividend
Alef Education has approved an interim dividend payout of Dh67.5 million for H1 2024, translating to a dividend per share of approximately Dh0.05. The company remains committed to a Dh135 million dividend payout for its 20% free float investors, with the current dividend yield exceeding 8%, it said in a statement.
