CIRA Education reports higher revenues, lower bottomline in 1Q 2022-2023: EGX-listed education services provider CIRA Education reported EGP 104.7 mn in adjusted net income in 1Q 2022-2023, down 3% y-o-y, according to the company’s earnings release (pdf). Revenues, meanwhile, jumped 25% to EGP 536.1 mn on rising student enrollment rates. It reported double-digit growth of enrollment at its two universities and 6% across its 25 K-12 schools. The company’s fiscal year begins on September 1, in line with the academic year.

Enrollment growth was boosted by new academic institutions: CIRA Education opened the Futures Language School in Qena in September and officially launched BUA with 7 new faculties. As a result, overall student capacity grew 36% y-o-y at its higher education institutions and 3% at its schools in 1Q 2022-2023.

Costs were driven up by depreciation + higher borrowing costs: High levels of depreciation were spurred by new and ongoing projects, particularly BUA, the release says. Rising interest rates, meanwhile, caused net interest expenses to more than double from a year earlier.

CIRA Education on weathering the economic storm: “Our growing margins amid significant inflationary and currency pressures is attributed to a greater level of economies of scale, which enabled us to absorb double-digit growth in costs during the same period,” said CEO Mohamed El Kalla.