National Learning’s Q1 2022/23 profit increase driven by higher student enrollment: Exec

National Company for Learning and Education’s (NCLE) Chairman Khalid Al-Khudair

National Company for Learning and Education’s (NCLE) profit increase for Q1 2022/23 was driven by the year-on-year (YoY) growth in the number of students in all existing or newly-operated educational complexes. This is in addition to the opening of a new educational campus of Tarbiyah Namouthajiyah Schools in Dhahran, Chairman Khalid Al-Khudair told Argaam in a call.

Al-Khudair added that student enrollment in all educational complexes witnessed a 40% YoY hike in Q1 2022/23 which played a major role in the increase in revenues. Further, the number of students grew to 21,600 students during the quarter, compared to 15,500 students in the same period a year earlier.

He explained that Tarbyah Namouthajiyah Schools in Riyadh contributed the most to revenues by 17% during the first quarter. The financial impact of the acquisition of Alsalam National Schools in Al Khobar will be reflected during the second quarter of FY 2022/23.

NCLE aims to operate two rented educational complexes in North Riyadh’s Al-Qairawan and Al-Arid neighborhoods in the coming year. The facilities include already-existing buildings spanning areas of 14,830 and 9,735 square meters (sqm), respectively, the chairman indicated.

Meanwhile, construction work will be carried out for three new educational lands to be operational in the near future. The plots are located in Qurtoba, Hittin and An-Narjis neighborhoods in Riyadh, with areas of 13,200 sqm, 12,650 sqm and 9,991 sqm, respectively.

Al-Khudair also pointed out that the company aspires to witness a renaissance in the number of students and financial performance during the next two years. This is through new projects that will mark a new era of expansion and growth.

He indicated that NCLE succeeded to be present in Eastern Province, which has a promising future in the high-quality private education sector, thanks to the acquisition of Alsalam National Schools in Al Khobar and the opening of the Tarbyah Namouthajiyah Schools complex in Dhahran. The latter is the company's debut in Eastern Province, targeting kindergarten and primary school students.

In addition, total government grants and subsidies amounted to SAR 3 million in Q1 2022/23 versus SAR 1 million in the prior-year period. This included grants received from the Human Resources Development Fund (Hadaf) to support employment through a number of initiatives.

The Saudi-listed firm participated in an initiative aimed at providing Saudi fresh graduates with entry-level jobs. Accordingly, the number of Saudi teachers grew 44.6% to 1,653 in Q1 2022/23, from 1,143 employees a year ago.

According to data available on Argaam, NCLE’s profits increased to SAR 25.9 million at the end of the first quarter ended Nov. 30, 2022, compared to SAR 18.1 million in the same period in 2021.