CIRA Educations reports higher revenues, income in 9M 2023-24: EGX-listed education services provider CIRA Education reported a 35% y-o-y increase in revenues to EGP 2.4 bn during the nine-month period ending 31 May, according to its earnings release (pdf). The company attributed this jump in revenues to higher enrollment across all three of its segments — nursery, K-12, and higher education.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

Driving the growth: Revenues from tuition, which accounted for 93% of total revenues, climbed 34% y-o-y to EGP 2.3 bn during 9M 2023-2024. This growth came on the back of higher enrollment rates following the inauguration of new faculties and the opening of two new schools — Regent British School and Futures Tech — at the beginning of the current academic year. Total revenues generated by the higher education sector rose 44% y-o-y to EGP 1.5 bn, while the K-12 segment reeled in EGP 894.2 mn in revenues, up 22% y-o-y.

The company saw its adjusted net income increase by 11.1% y-o-y to EGP 392.3 mn during the nine-month period. It blamed a “significant increase” in finance costs, which rose 62% y-o-y, for its lower profit margin of 16.2% — it was down 3.4 percentage points compared to the same period last year.

What they said: “As we continue to navigate the macroeconomic environment, our unwavering commitment to our growth trajectory remains steadfast. We maintain our focus on developing cutting-edge programs and forging strategic partnerships that enrich the educational experience for our students,” CEO Mohamed El Kalla said.

AND- CIRA will extend an EGP 77.5 mn loan to Al Ahly CIRA to help it finish the construction of the Saxony Egypt University of Applied Sciences and Technology (SEU) after CIRA’s board approved the decision, the company said in an EGX disclosure (pdf) yesterday.

Remember: Al Ahly CIRA — an education investment company set up by CIRA Education and Al Ahly Capital Holding in 2021 — last week received the greenlight from President Abdel Fattah El Sisi to commence operations at SEU. The company last month opened talks with the National Bank of Egypt to secure loans worth EGP 500-600 mn to partially fund the c. EGP 1 bn first phase of SEU.

When does SEU kick off operations? The company aims to launch SEU this fall, with a spring semester start date, according to the earnings release. The company had said last week that the launch date will “depend on the completion of the required operational approvals and the completion of the first phase of construction.”

ACT FINANCIAL’S TOPLINE DOUBLES IN 1H 2024-

Act Financial’s net income rose 79.3% y-o-y to EGP 109.4 mn in 1H 2024, while its revenues came in at EGP 261.2 mn during the half, jumping 104.5% compared to the same period last year, according to the company’s financial statement (pdf).

Remember: It has been a busy few months for Act Financial, as it gears up to make its EGX debut after wrapping up its heavily-oversubscribed IPO last week.

Tags: