Taaleem Holdings Reports Strong 9M 2024/25 Growth
Taaleem Holdings PJSC showcases robust growth in revenues and enrolment, marking a significant year-over-year increase.
Summary
Taaleem Holdings PJSC has reported strong financial and operational performance for the first nine months of 2024/25, with significant growth in revenues, enrolment, and expansion into early education.
Taaleem Holdings PJSC, a leading provider of K-12 premium education in the UAE, has released its financial and operational results for the first nine months of the 2024/25 academic year, showcasing impressive growth figures. The company reported operating revenues of AED 984.2 million, marking an 18.5% year-over-year increase. This robust performance is complemented by a 19.2% rise in enrolment at its premium schools, reflecting Taaleem's successful strategy in expanding its educational offerings and capacity.
Taaleem, which operates a portfolio of 12 premium schools and manages 26 schools under public-private partnerships in the UAE, has maintained its strong market position through strategic expansions and acquisitions. Notably, the company expanded its premium school capacity by 28.0% through the acquisition of LLFP Meydan and the launch of DBS Jumeira. This expansion supports a 19.2% year-over-year increase in enrolment, further solidifying Taaleem's commitment to providing quality education.
The financial highlights of the period include a net profit of AED 242.3 million, a 7.6% increase from the previous year, with a stable net profit margin of 24.6%. The company's EBITDA also saw an 11.8% year-over-year increase, reaching AED 378.9 million. Despite a slight decline in utilisation rates due to significant capacity expansion, Taaleem expects these figures to normalize as enrolment builds in the coming academic years.
In addition to its strong financial performance, Taaleem is making strategic moves to enter the early education segment. The acquisition of Kids First Group, a leading GCC nursery operator, is set to add 34 nurseries to Taaleem's portfolio, further diversifying its educational offerings. This move is expected to enhance Taaleem's market presence and provide a comprehensive educational pathway from early years to K-12.
Given Taaleem's strong financial performance, strategic expansions, and entry into new educational segments, the outlook for the company remains optimistic. Investors may consider a 'buy' recommendation, as the company's growth trajectory and strategic initiatives position it well for future success.
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Summary
Taaleem Holdings PJSC, a leading K-12 premium education provider in the UAE, reported strong financial and operational performance for the first nine months of the 2024/25 academic year. Operating revenues increased by 18.5% year-over-year to AED 984.2 million, with premium school enrolment rising by 19.2%. The company's net profit reached AED 242.3 million, up 7.6% from the previous year, although the net profit margin declined by 2.5 percentage points to 24.6%. Taaleem expanded its premium school capacity by 28.0%, adding new schools and seats, and is set to further grow with the acquisition of Kids First Group, adding 34 nurseries to its portfolio. EBITDA rose by 11.8% to AED 378.9 million, with a gross profit increase of 14.9% to AED 493.5 million. The company is also expanding into early education and continues to grow its premium and super-premium offerings.
