National Education Company’s quarterly profits rose to 38.1 million riyals

The profits of the National Education Company rose in the first quarter of the fiscal year ending last October 31.
The company said in a statement: Profits increased by 38.1 million riyals, an increase of 22.7%, compared to 31.05 million riyals in the same quarter of last year.
The increase in net profit is due to a 16% increase in revenues over the same quarter of the previous year.
It should be noted that advertising expenses witnessed an increase during the current quarter compared to the same quarter of the previous year.
This increase is mainly due to changing the end of the company’s fiscal year to July 31 instead of August 31.
She reported that the bulk of these expenses usually occur during the months of July and August.
She explained that the current quarter (from August 1, 2024 to October 31, 2024) included part of the marketing campaign expenses associated with registration for the beginning of the academic year.
It stated that the comparative quarter (from September 1, 2023 to November 30, 2023) did not include the months in which the expenses of these marketing campaigns were made.
Although revenues increased by 15% in the current quarter compared to the previous quarter, net profit decreased by 34% compared to the previous quarter.
This is due to the effect of changing the end of the company’s fiscal year and issuing the financial statements for the previous year as a short fiscal year (11 months).
As a result, the last quarter of the previous fiscal year (previous quarter) was a short period of only two months (from June 1, 2024 to July 31, 2024).
This resulted in recording the remaining revenues from tuition fees for a full three months in the previous quarter, while costs and expenses were recorded for the two-month period only, which affected the comparison with the results of the current quarter.