Oman Education & Training Investment Company SAOG (OETI) Earnings Call Transcript & Summary

[Foreign Language] Salam alaikum, everybody. Thank you for your interest in OETI. This is our second quarter report. I will go through the financials. I have here with me Mr. Mohammed Habayeb. He's the Group Financial Controller. He will be presenting. And this is speaking with you, Anis Al-Mamaari, I'm the CEO of the group. I'm guessing everybody here is English speaking, maybe because of the directions and regulations, we have to present both in Arabic and English. So we'll start maybe in Arabic. And then will go through the English. Thank you again. And if you have any questions, please don't hesitate to share your thoughts. Thank you very much. Habayeb, the floor is yours.

[Foreign Language] Al-Mamaari?

Go ahead, Habayeb.

Okay. [Foreign Language] And I'll talk in English on behalf of the -- we're welcome.

[Foreign Language]

Okay. Dear shareholders, on behalf of the Oman Director of -- on behalf of the Director of Oman Education & Training Investment Company SAOG, it's my pleasure to present the second quarter results for the year 2025. I will talk about that short information about the investor report. Oman Education & Training Investment SAOG has tried through its version to be among the best investment companies in the society of Oman. It has enhanced its investment opportunities through the following. Appointing a contractor for the innovation center project within the Sohar University combined the establishment of the innovation center at Sohar University, the first of its kind in the private higher education in Oman. And it will be a major milestone to build knowledge, build economy in Oman. Sohar University had approval to grant a number of the new program of the Bachelor level. The most important of which is a bachelor degree in Arabic for non-native speakers to attract international students and doctoral program in law and business administration has been opened at the university. At the university ground, a doctoral degree and 5 of its 6 facilities. And thus, Sohar University is one of the private higher education institutions not to profile this number of different program in its campus. The university continue to achieve further growth in the number of student rule and the study for the academic year '24-'25 for the second semester as total number of student enrolled in the university became 30,285 students studying in various program from the normal bachelor degree.

Sir, your audio is muted.

Your mic is muted.

From the beginning or now?

From the beginning.

We can repeat it again.

[Foreign Language] So from the beginning of this slide, please.

Okay. We can repeat again.

[Foreign Language]

This one, from here, right? Okay, here, we are going about talking about the financial statement. Here, we'll start in consolidation statement of financial position. Noncurrent assets, property and equipment, there is decreased 5% due to the decrease in -- mainly due to depreciation, and due to -- decrease mainly due to the depreciation for the period and loss of [ 822 ] related to [ CAWIV ] of Sohar University additionally during the period, mainly related to the furnitures, vehicles and computer. And here, also a small amount regarding the right-of-use assets, investment, there is no investment in this period. The same amount coming. Okay, regarding the investment amount. Inventories minus 38%. It's mainly related to books and stationery and the cleaning materials. And other receivable increase by 25%. The increase mainly due to the increase in the key [indiscernible] net of ACL and account of significant receivable. And account of significant receivable from Ministry of Higher Education. Cash and bank increased by 36%. Cash and bank balance mainly comprise of cash at bank, including call deposit and fixed deposit. The increase is primarily attributed to enhance profitability and improved recovery of the receivables during the year. The overall cash generated from operations and investment activity. Noncurrent liabilities. Here, there's -- I'm talking about the grant, the grant decreased by 3%. This -- related to the grant provided for building infrastructure and related assets of Sohar University. The decrease is due to relate to profit or loss on the year. This amount has been reduced every year from the grants, OMR 472,000 of money, which is equivalent to 15% from the total grant. Different -- deferred tax liabilities decreased by 17%. The decrease in net deferred tax liability is mainly due to the restated the previous year deferred tax liability. [indiscernible] liability movement is due to the payment of rental and interest charges for the period and service benefit increased by 37%. The movement starts for the period and payment made during the period to the outgoing employees and the new labor law as the new labor law explained that before it was for each staff, eligible for service benefit is eligible for 33 and 1.5 month for each year, for 3 years, 1.5 months. Now the law has been changed to be 3.5 months for the -- 3 months for 3 years and every 1 month and basic salary. Because of that, this is increase. Student deposit investment results of our graduation student -- graduate student. Training and other payable the increase is mainly -- the increase 21%, mainly due to increase in accrued expenses, and increase in the end and tuition fees. Income tax payable 1% increase. The increased provision is mainly their payments to Sohar University due to high profit for the period. Okay. Here, there is no movement in share capital. Here, legal advisers increased by 1%. No material movement due to the complete legal reserves, 33.33% from the capital for most of the company. Property revaluation, there is no movement of this amount. This has resulted because of the increase of land value. This difference -- the difference between the land valuation as of today and then land purchase. [indiscernible] earning 68% increase due to return earnings mainly related to profit for this period. This increase coming mostly because of the profit of this period coming from this period. [indiscernible] income statement here talking about the consolidated statement of profit on this account. Income statement for the period from 1 September '24 up to 28 February '25. Now I'm talking about tuition and training fees. This is increased by University continues to achieve further growth and the number of the student enrolled in the study of that academic year '24-'25 and the total number of students enrolled in the university became 13,285 students studying in the various program from Diploma to Doctoral degree. This amount came from second semester, this amount. Other income. Other income increased 8%. Other income mainly includes the income generated by services like offered by the University was mainly increased due to the student accommodation income from the -- for the increase of the student. Because of the student increase, now mostly the accommodation of the Sohar University building fully capacity. Salary and stock-related cost it has been increased 19%. The increase is mainly due to the annual increase and increased salary and allowances due to the hiring of faculty and other support staff to accommodate the increase in the number of the student during the year and the increase in the end of service benefit for the employees, mainly due to the application of new labor law. Well, continuing the consolidation statement of profit or loss account. Administration and other operation expenses increased by 36% or OMR 157,000, increase is mainly due to the increase in repair and maintenance, increase in the research expenses, increased in advertising and marketing expenses, increase in other general expenses in line with the increase on operations. You know that because of the number of student have been increased, the expenses increased. To be -- to fit the number of student. Depreciation and improvement on [indiscernible] and equipment and [indiscernible] assets, increased by 1%, slightly increased due to the additional during the year. Lead of the deferred grant-related assets, no changed, last year's -- same last year. We'll continue our consolidated statement of profit or loss continued. Finance cost, this related to the interest of lease liability. There is minor difference. Finance income is 100 -- more than 100% increase. This related to increased income and on call deposits and fixed deposit as well as the cash available in the group that most of the cash has gains investment in call deposit and fixed deposit. Income tax expense increased by 1%. Increase in current tax, OMR 99,000 due to increase in profit for the period. Profit for the year increased by 1%. The increase in both net profit and net profit ratio and the operational income of the group has increased by 18%. Most of the increase that because of that, and we are talking about the income increased by 11%, but there's increased salary and expense has been increased. So we are keeping the same -- mostly the same profit last year. There is no change in the net profit last year. Chair, you can come in.

Sure. Yes, you're done?

Yes, yes. Anybody need to question...

Okay. I think Mr. Peter have a question there, he's raising his hand. Mr. Peter? I think his mic is off. Until Mr. Peter comes, anybody have any inquiry, any questions? Please go ahead. So I'm guessing there is no questions, no inquiries. So we'd like to thank you everybody for attending. And we'll see you inshallah in the next quarter. Thank you very much. Take care. We'll see you.