EARNINGS WATCH- Cairo for Real Estate and Investment (CIRA) reported a 51% y-o-y increase in net profit to EGP 249.8 mn in the first nine months of its fiscal year, which ended 31 May 2019, according to the company’s earnings release (pdf). Revenues rose 32% y-o-y during the period, coming in at EGP 642.4 mn. The strong revenue growth was “a direct result of our continuous efforts to differentiate our institutions in the market and cement CIRA’s brand presence,” the company said. Student enrollment in both CIRA’s K-12 and Upper Education segments has been “growing faster than our added capacity,” the company added, and this in turn has been driving growth at multiple levels. The construction of six new faculties at Badr University is ahead of schedule, with the faculties due to launch in the 2020 academic year, and the qualification process for 81 feddans of land to build a flagship university in Assiut has been concluded. In June 2019, CIRA acquired a majority stake in the British Columbia Canadian International School (BCCIS) — which, it notes, is one of the top ranked schools in the country — through the acquisition of a 60% stake in its parent company, Star Light Educational DMCC Corporation.

Looking ahead: CIRA “will continue to introduce high-demand and underserved specialties across our tertiary segment,” CEO Mohamed El Kalla said. The strong relationship between CIRA and the “top-notch” management team of the BCCIS will allow them to combine their expertise and form a new management team focused on enhancing the profitability of all the schools under CIRA’s belt, he added. Growth remains the company’s core focus, as “the addition of new schools and faculties are positioned to capture Egypt’s burgeoning middle-class segment’s pent-up demand for world class education at more affordable prices.”