Ataa Educational’s quarterly profits increased by 7.7% to 21.9 million riyals

The profits of Ataa Educational Company in the first quarter of the current year increased by 7.7% to 21.9 million riyals, compared to 20.4 million riyals in the same quarter of last year.

According to the company’s statement on the website "Saudi Arabia trading"The reason for the increase in net profit during the current quarter compared to the same quarter last year by 8% is due to the following reasons:

The decrease in operational costs and the return mainly due to the cessation of activity in the training and employment sectors as of the beginning of the current quarter despite:

1- The increase in the provision for expected credit losses, as a result of the increase in the rate of receivables with older credit ages compared to the same quarter of the previous year.

2- The increase in financing expenses during the current quarter compared to the previous quarter. The same amount of the previous year is due to the loans used to finance the construction of Al-Wasat Complex and the development of Al-Izdihar Complex.

3- The positive impact of growth in educational sector revenues for the current quarter decreased compared to the same quarter of the previous year due to amending the methodology for proving educational service revenues (tuition fees).

The increase in net profit during the current quarter, amounting to 18.8 million riyals compared to the previous quarter, is due to a 42% growth in revenues.

This came as a result of an increase in fees in some of the company’s complexes. Modifying the method of recognizing revenues from educational services and associated costs, as revenues were recognized based on 81 school days in the current quarter compared to 57 school days in the previous quarter, and recalculating the associated costs.

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