Ataa Educational Co. — Interim / Quarterly Report 2023

Dec 5, 2022

Ataa Educational Co. announces its Interim Financial Results for the Period Ending on 2022-10-31 ( Three Months )

4292 · 05/12/2022 15:52:27 · Announcement #71236 · View on Saudi Exchange

Ataa Educational Co. announces its Interim Financial Results for the Period Ending on 2022-10-31 ( Three Months )

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	167,787	138,188	21.42	164,327	2.1
Gross Profit (Loss)	49,966	38,605	29.43	39,466	26.61
Operational Profit (Loss)	29,586	59,054	-49.9	21,559	37.23
Net Profit (Loss) after Zakat and Tax	21,061	51,414	-59.04	13,652	54.27
Total Comprehensive Income	21,061	51,414	-59.04	11,420	84.42
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Total Share Holders Equity (after Deducting Minority Equity)	880,706	810,992	8.6
Profit (Loss) per Share	0.5	1.22
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	The reason for the income decrease during the current quarter compared to the same quarter of last year is due to:

Calculating non-recurring gains in the same quarter of the previous year resulting from the acquisition of the Arabian Education and Training Group (AETG) (Note No. 10 in the budget) at a value of 38.1 million riyals.

Excluding the effect of these gains, considering that they are non-recurring and not a result of activity, there is an income increase of the current quarter by 58.4% compared to the same quarter of the previous year, due to the following:

1- The increase of the students’ number by 19% from 37.6 thousand to 44.8 thousand male / female students resulted in income increase by 21% compared to last year, which is mainly due to the increase in the number of students enrolled in the schools affiliated to the company, and the acquisition of Nabaa Educational Company

In addition to the increase in tuition fees compared to the previous year, which included exceptional discounts related to the repercussions of Corona pandemic, announced by the company at that time.

And this is despite the increase in operating costs by 20% due to the consolidation of the financial statements with the acquired Nabaa Educational Company, in addition to the costs resulting from the attendance of the preparatory and primary sections.

2- An income increase of government grants by 141% as a result of the increase in revenues received from government initiatives.

3- An increase in other revenues by 30% as a result of the attendance return of students in the primary grades, and the consolidation of the financial statements with the acquired Nabaa Educational Company.

4- An increase in administrative and marketing expenses by 28% compared to last year as a result of the increase in marketing expenses, in addition to the consolidation of the financial statements with the acquired Nabaa Educational Company.

5- An increase in financing costs by 17% compared to last year due to the borrowing related to the purchase of the (ATEG), in addition to the increase in SIBOR prices.The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is The reason for the income increase during the current quarter compared to the previous quarter is due to:

The increase in the number of students by 6% from 42.4 thousand male and female students to 44.8 thousand male and female students resulted in income increase by 2%, which is mainly due to the increase in the number of students in addition to the increase in tuition fees compared with the previous year.Statement of the type of external auditor's report Unmodified conclusionModification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion There is no notesReclassification of Comparison Items Some elements of the statement of financial position and income statement have been reclassified.

For more details, please refer to Note No. 17 in the financial statements.Additional Information We would like to draw the attention of our honored shareholders that the Interim condensed Consolidated financial statements for the three month ending on October 31, 2022 will be available on the company's website. ataa.sa.

The company would also like to draw the attention of the financial analysts and investors that their inquiries about the annual business results of the company are through e-mail.ir@ataa.sa

This is within 10 days from the date of publication of the financial statements.

Allah bless all.

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