NCLE’s net income rises 5.8% as enrollment grows

The National Company for Learning and Education (NCLE) reported a 5.8% y-o-y increase in net income to SAR 170.1 mn for the fiscal year ended 31 July, according to a Tadawul disclosure. Revenue grew 12.4% to SAR 739.5 mn, driven by a 10% rise in enrollment to 35.2k students from 31.9k a year earlier.

Behind the numbers: Net income lagged revenue growth as higher finance costs, Zakat charges, and lower wage subsidies weighed on earnings. Operating net income rose 8.9% to SAR 202.7 mn, while financing costs increased due to land lease contracts for the Khuzam Suburb (SAR 63.9 mn) and Dhahrat Laban projects (SAR 68.7 mn) in Riyadh, as well as borrowing costs associated with land purchases in Riyadh’s Al Rabie (SAR 35.7 mn) and Al Yasmin (SAR 39.4 mn) districts and Jeddah’s North Obhur district (SAR 27.9 mn).