CIRA Education reports higher revenues, lower bottom line in 1H 2022-2023:EGX-listed education services provider CIRA Education reported EGP 223.4 mn in adjusted net income in the first half of its 2022-2023 fiscal year, down 25% y-o-y, according to the company’s earnings release (pdf). Revenues, meanwhile, climbed 22% to EGP 1.2 bn as the company expanded its reach, while EBITDA for the period was up 13%. While CIRA’s gross profit grew comfortably despite the high-inflation environment, its bottom line came under pressure on the back of a more than 2x rise in interest expenses.

Topline growth was driven by a rise in tuition revenues: Tuition revenues climbed 22% y-o-y to EGP 1.1 bn in 1H 2022-2023, accounting for 93% of total revenues. Tuition growth was primarily driven by the inauguration of Badr University in Assiut and Futures Language School in Qena, which ramped up enrollment rates. CIRA’s higher education segment generated EGP 677.4 mn in revenues, up 27% y-o-y, while its K12 segment brought in EGP 477.1 mn (+16% y-o-y). The company’s financial year runs September to August, in line with the academic year.

CIRA stable amid challenging conditions: “Despite the headwinds created by increasing interest rates, I am pleased to report that CIRA has maintained its ability to absorb higher interest expenses without the need for further action, with the group financially stable and well-positioned to withstand the changing economic environment,” said CEO Mohamed El Kalla.

Opportunity from crisis: “In light of a depreciating currency which has increased the cost of international education, the current economic climate has created a new market for those seeking local education solutions at international standards,” El Kalla said. “In response, we are in the process of meeting the needs of this growing demographic with the planned launch of micro-campuses in Egypt.”

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