Taaleem’s premium schools strengthen bottom line

Taaleem

• Student enrolment up 10 percent
• 2,400 new premium places available
• Profits increase by 39 percent

UAE-based schools operator Taaleem has reported net profit before tax of almost AED278 million ($76 million) for the nine-month period through to the end of May.

Profits at the Dubai-listed company, which operates 32 schools across the UAE, increased by close to 39 percent year on year. Revenues over the period were up 15 percent to AED831 million.

It was buoyed by rising revenues from its 10 premium schools, which made up 89 percent of revenues, with enrolment up by almost 10 percent to 13,986 students.

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Available seats at Taaleem’s premium schools have dropped over 30 percent to 2,870.

Taaleem chairman Khalid Al Tayer said a further 2,400 premium places would be made available with the new Dubai British School Jumeira and the expansion of Greenfield International School that is close to completion.

This week Taaleem signed a deal with Harrow International Schools Limited, which gives exclusive rights to own and operate eHarrow International Schools across the UAE, Saudi Arabia, Bahrain, Oman, Qatar and Kuwait.

“Our partnership with this distinguished education provider marks a pivotal milestone in our expansion strategy,” said Taaleem CEO Alan Williamson.

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The ongoing expansion comes despite a warning from analysts that the education sector in Dubai is no longer yielding the lucrative double-digit returns that it used to.

Navin Valrani, CEO of The Arcadia School, previously told AGBI that new investors considering the UAE must tackle significant entry barriers, escalating costs and an increasingly mature market.

Overall enrolment at Taaleem’s schools was up 33 percent year on year to almost 38,000 students.

Taaleem’s shares were trading at AED3.73 on Friday morning.