Earnings Watch: CIRA, QNB Al Ahli
Net profit at private sector education outfit CIRA grew 12% y-o-y to EGP 122.5 mn in the first quarter of their 2020-2021 fiscal year, which begins in September, according to the company’s earnings release (pdf). Revenues rose 18% y-o-y to EGP 370 mn, the bulk of which came from tuition fees which increased 25% y-o-y. Top line growth was driven by an uptick in enrollment and the inauguration of four new faculties at its Badr University Cairo, which helped CIRA grow its student capacity 46% y-o-y during the quarter and grew the university’s enrollment 26% y-o-y.
During the quarter, CIRA also successfully issued its first EGP 600 mn sukuk, the proceeds of which will be used to finance a number of current and future projects. EFG Hermes acted as the sole financial advisor, global coordinator, and bookrunner on the issuance.
Looking ahead: CIRA will begin constructing a Futures language school by the end of January on a land plot it purchased in Sohag last August, and expects to begin campus activities by the end of September 2021 as construction is moving ahead. The admissions process has also kicked off for two upcoming K-12 schools: British Columbia Canadian International School West and the Saxony International School in Orascom Construction’s O West.