NCLE relies on internal cash flows, bank facilities for expansion: CEO

The profit growth came despite higher financing expenses related to land acquisitions in Riyadh and Jeddah, as well as the lease agreement for the Dhahrat Laban project.

He noted that a slight contribution to profit growth came from recognizing revenue for 90 days out of a total of 314 days in the 2025-2026 academic year, compared to 90 days out of 321 days in the previous year, which had a positive impact on the results.

Regarding financing costs related to expansion, the CEO said the company will rely on a mix of internal cash flows and bank facilities to fund land purchases and develop educational complexes.

Accordingly, financing expenses may continue to rise as new expansions are undertaken.

As for student numbers, Alkhudair pointed out that total enrollment across the company’s schools reached 35,100 students during the current period, reflecting a 10% increase compared to the same quarter last year.

He noted that Al Rayan, Al Rawabi, and Al Qairawan complexes were the largest contributors to Q2 revenues.

The CEO added that all educational complexes recorded growth in student numbers during the current period, particularly the new complexes launched last year in the Qurtoba, Al Narjis, and Hittin districts in Riyadh.

Profitability varies from one complex to another depending on capacity and occupancy rates, differences in student-to-teacher ratios, and the varying impact between leased and owned complexes, the CEO noted.