On 2026-03-03 15:57:20 (Saudi Time), Ataa Educational Co. announced its Interim financial results for the six months ended on January 31, 2026.

Year-on-Year Performance Drivers

Sales remained nearly flat with only a 0.053% YoY increase to 360.33 million SAR for the six-month period, as a 4% growth in the Education segment from higher fees was offset by changes in revenue recognition methodology and suspension of Training and Recruitment segments. Net profit increased modestly by 1.988% to 59.33 million SAR, driven by the Education segment's revenue growth and improved operational efficiency, despite a 47% decline in other revenues compared to the prior year period.

Quarter-on-Quarter Performance Drivers

QoQ revenue increased 18.08% to 195.11 million, primarily driven by revised revenue recognition methodology following SOCPA guidance, recognizing revenues over 92 school days versus 81 days in the previous quarter, plus 2% growth in student enrollment from 43,114 to 43,744 students. Net profit surged 69.99% to 37.36 million, benefiting from the 18% revenue growth under the new academic year-based recognition approach rather than financial year-based methodology.

Other Items

The auditors issued a notice opinion drawing attention to Note 16 regarding the Group's revision of revenue recognition methodology for educational services, stating "We draw attention to Note (16) to the condensed consolidated interim financial information, which provides further details on the Group's revision of the methodology for recognizing educational service revenues and the related costs, whereby such revenues and costs are recognized over the academic year instead of the financial year, in accordance with the guidance issued by the Saudi Organization for Chartered and Professional Accountants (SOCPA). This methodology has been applied to the comparative figures for the period under review. Our opinion has not been modified in respect of this matter." No material uncertainties regarding going concern or debt covenant breaches were reported. Total shareholders' equity increased 2.086% to 823,724 thousand SAR, and earnings per share improved from 1.38 to 1.41 SAR.

Original announcement:

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