Ataa Educational’s quarterly profits decreased to 37.35 million riyals

The profits of Ataa Educational Company in the second quarter of the fiscal year 2025-2026 decreased by 1.1% to 37.35 million riyals, compared to 37.76 million riyals in the same period of the previous fiscal year.

The company said in a statement on its website "Saudi Tadawul: Although revenues increased by 3% during the current quarter compared to the same quarter of the previous year, net profit decreased by 1% compared to the same quarter of the previous year.

This is due to the decrease in other revenues in the current quarter by 66% compared to the same quarter of last year and the achievement of non-recurring revenues resulting from the settlement of obsolete obligations in one of the subsidiaries.

This came despite the educational sector achieving an increase in net profit during the current quarter. by 7% compared to the same quarter of last year, which is due to an increase in sector revenues by 7% compared to the same quarter of last year.

The reason for the increase in net profit during the current quarter, amounting to 15.4 million riyals, by 70% compared to the previous quarter, is due to an increase in revenues during the current quarter by 18%.

This came as a result of amending the methodology for proving educational service revenues (tuition fees) in light of the directive issued by the Saudi Organization for Accountants and Auditors to recognize These revenues are based on their distribution over the period of the academic year instead of the fiscal year. This methodology was applied to comparative figures for the comparative periods, as the revenues of the current quarter were recorded on 92 school days compared to 81 school days in the previous quarter, which resulted in a growth in revenues for the current quarter.

The reasons included a growth in the number of students enrolled in the company’s schools by 2% from 43,114 students in the previous quarter to 43,744 students. In the current quarter.

The reason for the increase in net profit during the current period (6 months) by 2% over the similar period of the previous year is due to:

The increase in the educational sector’s revenue in the current period by 4% over the similar period of last year, which is due to the increase in fees in some of the company’s complexes despite the diminishing positive impact of growth in the educational sector’s revenues (tuition fees) due to amending the methodology for recognizing educational service revenues (tuition fees) in light of the directive issued by the Saudi Authority for Accountants and Auditors for these revenues to be recognized. On the basis of distributing them over the period of the academic year instead of the fiscal year, this methodology was applied to the comparison figures for the comparative periods, as the current period’s revenues were recorded on 173 school days compared to 179 school days for the similar period, despite the decrease in other revenues by 47% over the similar period of the previous year due to the recognition of non-recurring revenues resulting from the settlement of obsolete obligations not related to the activity in the similar period of the previous year.

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