National Education Company’s quarterly profits rose to 65 million riyals
The profits of the National Education Company increased "National Education" In the second quarter of the fiscal year 2025-2026, by 18%, to 65 million riyals, compared to 55 million riyals in the same period last year.
According to the company’s statement on the website "Saudi Arabia trading"The increase in net profit during the current quarter by 18% compared to the same quarter of the previous year is due to the growth in revenues for the current quarter by 15% compared to the same quarter of the previous year.
Financing expenses also increased during the current quarter compared to the same quarter of the previous year as a result of the loans used to finance part of the purchase value of Al-Rabi’ land in the city of Riyadh and the northern Obhur land in the city of Jeddah, in addition to the impact of the land lease contract for the Dhahrat Laban project under implementation in the city of Riyadh.
It should be noted that the recognition of revenues for the current quarter of this year was calculated on the basis of 90 days out of the total days of the 2025/2026 academic year, which amounted to 314 days, compared to the similar quarter of the previous year, which was calculated on the basis of 90 days out of the total days of the 2024/2025 academic year, which amounted to 321 days, which had a positive impact on the growth rate in net profit for the current quarter.
The increase in net profit is due to During the current quarter, by 83% compared to the previous quarter, revenues grew by 15%, as a result of the difference in the number of days recognized in recording tuition revenue between the two periods. In addition to the decrease in advertising expenses during the current quarter due to the previous quarter including marketing campaign expenses related to registration for the beginning of the academic year.
Although revenues increased by 11% during the current period (6 months) compared to the similar period of the previous year, net profit increased by 3% compared to the similar period of the previous year.
This is due to the difference in the number of days recognized in recording tuition revenues between the two periods. On the other hand, operational costs and expenses are charged entirely over the period (180 days) without any connection to the number of days recognized for tuition revenue, which affected the growth rate in net income for the current period.
The item of government grants and subsidies witnessed a decrease during the current period compared to the similar period of the previous year, and this is due to the decrease in the item of wage support provided by the Human Resources Development Fund.
In addition to the increase in advertising and publicity expenses during the current period due to the main focus of marketing campaigns for the current academic year In the month of August, while last year’s marketing campaigns were distributed between the months of July and August, which led to their impact extending to two financial periods.
The current period also witnessed the formation of an allowance for expected credit losses, as a result of the high rate of receivables with older credit ages compared to the similar period of the previous year.
It is worth noting the increase in financing expenses during the current period compared to the similar period of the previous year as a result of the loans used to finance part of the value of purchasing Al-Rabi’ land in the city of Riyadh and land. North Obhur in Jeddah, in addition to the effect of the land lease contract for the Dhahrat Laban project under implementation in Riyadh.
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