National Learning net profit down 68% to SAR 3.8 mln in Q1 2020-21

National Company for Learning and Education (NCLE) reported a net profit after Zakat and tax of SAR 3.8 million for Q1 2020/2021 ended Nov. 30, 2020, a 68% year-on-year decline, from a profit of SAR 11.6 million in the same quarter last year.

The decline in net profit is attributed to lower revenue for the current quarter which resulted mainly from providing discounts with different rates from 20% to 50% on the first semester tuitions of the current academic year, concurring with the Ministry of Education announcement of the online education for the first semester, the company said in a bourse filing.

Moreover, the finance cost increased during the current year as a result of the decrease in earned revenue of short-term Islamic Murabaha, and IFRS 16 application on lease contracts of Al-Khawarzmi Education Company and Al-Ghad National Schools Company Limited.

When compared to previous quarter, the company’s net profit fell 81.6% on lower revenue and higher cost of revenue as the previous quarter coincided with the schools’ summer vacation in which lower operational cost is incurred.