CIRA Education reports higher revenues in 1H 2023-24: EGX-listed education services provider CIRA Education reported a 34.6% y-o-y increase in revenues reaching EGP 1.6 bn in the first half of its fiscal year ending 29 February 2024, according to its latest earnings release (pdf).

The growth was thanks to rising enrollment rates across its institutions, particularly its universities — enrollments at its two Badr University branches in Cairo and Assiut were up 24% y-o-y in the period to 19.9k students. This was helped by a 21% expansion of student capacity, thanks to the opening of Badr University Assiut. Tuition fees saw a “minimal” increase, but tuition revenues grew by a solid 33.7% y-o-y to hit EGP 1.4 bn thanks to the enrollment spike, according to the company’s statement.

The company’s net income was up 12% in 1H 2023-24: CIRA Education saw its adjusted net income increase by 12.3% y-o-y to EGP 250.7 mn in the first half of its fiscal year. A sharp hike in finance costs — up 56% y-o-y — curbed CIRA’s profit margin to 16.1%, marking a decline of 3.1 percentage points y-o-y.

Stability despite economic headwinds: “Despite growing headwinds such as inflation, increasing interest and forex pressures, we have successfully maintained our financial stability. Although recent trends in our income statement didn't reflect subsequent events, such as the [600 bps] interest rate hike or sudden FX devaluation, our robust performance over the last six months have positioned us well to absorb the anticipated impacts, particularly on our bottom line, in the coming two quarters without deviating from our initial budget for the year,” said CEO Mohamed El Kalla.

There’s optimism looking ahead: “In light of current economic challenges, there has been a notable uptick in Egyptians' inclination to invest their savings in their children's education, driven by aspirations for enhanced job prospects. This is underscored by the heightened awareness of the pivotal role quality education plays in securing a better future,” El Kalla wrote. “As such, we remain optimistic about our growth prospects as demand continues to surge across all platforms.”

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