NCLE earns SAR 35.5M in Q1 ended Oct. 31

National Co. for Learning and Education (NCLE) reported a net profit of SAR 35.5 million for the first quarter ended Oct. 31, compared with SAR 42.9 million in the year-earlier period.

This profit decrease is primarily attributable to the difference in the number of days recognized for tuition-fees revenue between the two periods. In contrast, operating costs and expenses are recorded over the full quarterly period of 90 days, irrespective of the number of days recognized for tuition-fees revenue, which resulted in a negative impact on net profit for this particular quarter.

Additionally, government grants and subsidies decreased during the quarter compared to the same quarter of the previous year. This was mainly due to lower wage subsidies provided by the Human Resources Development Fund, as well as the fact that the same quarter of the previous year included the receipt of a grant from the Ministry of Education covering two financial years.

Meanwhile, revenue increased by 7% year-on-year (YoY) during the quarter, as the number of students enrolled in the company’s schools rose by 10% YoY to 35,100.

The company had posted net earnings of SAR 5.70 million in the previous quarter.

Shareholders’ equity, no minority interest, amounted to SAR 897.16 million in the period, compared to SAR 836.6 million in the prior-year period.

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