Academy of Learning’s expansions to impact H2 2025 results: CEO

Khalid Al-Ammar, Chairman of Academy of Learning Co. (AOL)

The decline in Academy of Learning Co.'s (AOL) net profit for H1 2024 was “normal” and planned in advance, as it was a result of the expansion and growth strategy adopted by the company through opening new branches in current and new cities such as in Dammam and Riyadh, Chairman Khalid Al-Ammar told Argaam.

Al-Ammar highlighted the company’s expansion in programs and services to meet the needs of the Saudi labor market. He also underscored the increase in the number of branches in 2024 to 11 and the number of diploma programs to 24, which boosts the company's growth in the coming years.

He explained that operational losses weighed the company's earnings as planned and expected, noting that if AOL had not invested in the expansion and opening of new branches, its 2024 net profit would have leapt 54% to SAR 44.2 million, compared to SAR 28.5 million in 2023.

"However, the company aims to maintain and sustain its increasing growth rates, which reached about 40% in 2024—an excellent growth rate in a promising and open market where we are among the leading companies," the Chairman said. "Therefore, the company decided to continue expanding and agreed to reduce its annual earnings this year in exchange for achieving its long-term strategic goals."

He expects the expansion decision to positively impact student enrollment, which will, in turn, enhance the company's business volume, revenues, and net earnings. "The positive impact began to appear last year, with student numbers increasing by 20% even before the new branches operated at their planned full capacity. This confirms that continuing with expansion is a sound decision in such a promising market," Al-Ammar said.

Further, he said the company's expansion strategy led to an increase in the number of students in 2024, reaching 14,300, compared to 10,100 in the previous year, marking a 42% growth rate.

As for the second half of 2024, Al-Ammar said the company served 9,970 students, compared to 8,342 in the same period the previous year, a 20% increase, the Chairman said. He expects a significant rise in these numbers in the coming period, following the company's extensive and qualitative expansions in 2024.

Based on the company's plans, the positive impact of last year’s expansions is expected to materialize in H2 2025 and beyond.

Saudi Arabia’s training and education market is promising, especially with the Ministry of Education's incentive programs, which provide various investment opportunities, improve regulations, and offer information that facilitates investment in this vital sector.

AOL has a high level of flexibility in keeping up with developments and seizing opportunities. It is continuously striving for both geographical and qualitative expansion.

The Chairman further said several expansion projects are currently under study, though no final decisions have been made yet, as all aspects are being examined to ensure the company’s and its shareholders' best interests, aligning with its medium- and long-term strategic goals.

Additionally, these plans contribute to the company’s societal role in developing the training and education sector in line with Saudi Vision 2030. According to Argaam data, AOL reported a net profit of SAR 12.1 million for H1 2024-2025, which ended in December 2024, marking a 17% year-on-year (YoY) decline from SAR 14.5 million.