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

Hello, everybody. This is Anis Al-Mamaari, the CEO of OETI. And I have here with me Mr. Mohammed Habayeb. He is the Financial Controller of the group. We will take you on a brief of what we have achieved last year. As I can see, most of the attendees are English-speaking attendees. So maybe Mr. Mohammed, maybe we start in English and then convert to Arabic. I don't believe anybody here of the attendees speak Arabic. [Foreign Language] Yes. I said let's start in English. [Foreign Language] You're showing the Arabic document. Okay. So this is the brief of what we have achieved last year. Mr. Mohammed will take you thoroughly into the financials, but I'll just highlight some of the main points that have been achieved last year. We are building a prestigious innovation center. The construction have already started. We expect to have the grand opening of this innovation center October 2026. The project is on schedule. The cost of this project is around OMR 5 million. We believe it's really important project since it would link the university to the [indiscernible] someone speaking, is there a request? If you have any questions, please be clear. If not, please put your mic on mute. I think Mr. Manna. Okay, thank you. Okay. So I was talking about the first point that we are building an innovation center. It's a prestigious project. It will link the university to the industry. It would have an incubator/accelerator so that we can host around 20 start-ups a year. It will be open for start-ups from all over not only Oman, but this innovation center would be international. So in addition to our students that wants to proceed entrepreneurship, we would also cater for others coming from other entities. The university have last year achieved growth in its enrollment. Last year, we have achieved 13,000 students, reminding you that like 4 years ago, we only had 7,000 students. So that's a big jump, and it's reflecting in our financials. We are very proud that the university have entered into a joint membership in the European Organization of Nuclear Research. It's the only university in Oman that has this sort of membership. And we believe this would enhance the research and innovation in the university. The point that this help is that the more research we do, the more we raise in the international ranking. And this is something that the university is pursuing to increase its ranking internationally. The final point is that university have established or thinking of establishing a faculty, I'm sorry, I just -- okay. Yes, in terms of accreditation, university have joined many international accreditation bodies, such as the Engineering Australia and Faculty of Information again from Australia. And that would increase the collaboration internationally. That's in a nutshell, what we are doing. There is -- if you scroll down Habayeb. Habayeb, if you go to the last point. Yes. Now we are in discussion to establish a health science faculty, it's in early stages. We believe health science is something that we can enter without major competitions from the other universities. We don't think that going into a medical school is visible at the moment. That's why we will start at a health science faculty and we'll take it from there. That's, in a nutshell, what we have achieved last year. And now I will leave it to Mr. Habayeb to take you into the financials. [Foreign Language]

Salam alaikum, everybody. We are talking about the financial statement of Oman Education & Training Investment ended 31st August 2025. First thing we have to start an overview of financial statement analysis. See here, we have -- when we have a look in the financial statement, we will find we have very strong cash in the bank. And also, we have very strong in assets of the group. The group has also equity return equity -- net equity almost 33,469,539, that is equivalent almost 5x of the EBITDA, okay? And also, if we have a look to balance sheet, we will find everything is positive in the balance sheet when compared to last year. There's a lot changing there. If you see the changing, you will find it. For example, there is a receivable cash balance of 34% exceeded 2024. This -- the financial statement looks -- is very strong, and that will discuss later about the ratio. If anybody have any question on the balance sheet? Nobody.

If they want, they can unmute and then they can speak. Tell them to unmute and then speak.

Now we have to go to the income statement performance analysis of group. Income statement, we have the total revenue OMR 29,058,593 compared to OMR 25,218,973 increased by OMR 3,839,620. If we have looked to that increase, it is equivalent to almost 17% compared to last year. Based on this one, we have increase in our income statement -- looks that salary and administration increased because of the increase of the income. Other thing, if we have look to the profit before from operation, we will find it OMR 2,597,963 increase compared to last year, which is very big compared to last year, almost 36% compared to last year increase. And also, if you go to the finance income, you'll find that it has increased OMR 388,000, 70% compared to last year. That -- this is a significant issue. Regarding the profit before tax, the group make OMR 12,204,000 compared to OMR 9,437,000 increased OMR 2,766,000. That's -- we have increase in the profit before tax and also increased by after tax [ OMR 2,600,000 multiplied OMR 786 ]. This is our income statement looks very strong and also looks too much -- we have a big increase compared to last year. Regarding the basic earning, if we see the basic earning, you will find that basic earning per share OMR 0.148 and this is for this year. Last year, it is 0.111, also better than last year. Operation profit ratio, 39% compared to 35% last year. Net profit ratio, 35% this year compared to 30.8% last year. The group has increased by 16% -- the group revenue has increased by 16%, primarily due to the rise of the registration of new students during the year. Out of the increase of OMR 2.92 million is mainly attributed to the field of art education, which saw a 20% growth in student enrollment as compared to the previous year. We have to go to the salary and staff related costs increased by 11% due to the fact and significant count of the new recruitment made during the previous year '23-'24 received full year gig. Unlike partial period, which was rate of the -- appointment also, it can be observed that there is a significant drop in the staff turnover ratio during the year. In 2023, '24 5.1% to [ 24.4% ]. Additional bonus provision increased QAR 183,000 during the year. Administration and other operation expenses increased by 24% during the year, mainly due to the increase in repair and maintenance cost of building by OMR 122,000 in all university and IT subcontract cost OMR 108,000 for providing vocation training student Tasees Company for Training and Services SPC. Finance income, we'll turn to interest receivable from fixed and for deposit, which were majorly funded from the student receipt. The fixed deposit OMR 5 million was made during the June '24 consequently having income for a part of the year only. The increase in the interest income during the year amounts to OMR 170,000 also there is an additional income [indiscernible] during the year, contributing to the further increase of [ OMR 200,000 ]. The company also, we have to go to the parent company. Parent company also if you go to the income statement of parent company, you will find that the dividend income from subsidiary, OMR 10,040,000 this year compared to OMR 7,750,000 last year. The increase was OMR 2,290,000 equivalent 30%. Other income. Other income is very small because there is no operation in Oman Education in that particular income. Salary has decreased by [ OMR 13,270,000 ] and also administration has increased by [ OMR 35,000 ] and depreciation also decreased by [ QMR 400 ]. There's an impairment loss on investment in subsidiary. This company has not made profits since 2 years. The auditor has decided to take provision for impairment loss on investment in the subsidiary for the purpose of conservation method. Allowance of expected credit loss on amount due from subsidiaries of the same company, they have not make any profit within 2 years. So for the conservation method they make that provision for expected credit loss OMR 90,000. Total comprehensive income for the year, for the group, for the company, parent company is OMR 9 million and last year OMR 7 million, increased by [ OMR 1.76 million ]. This year, the OETI made OMR 0.130 compared to OMR 0.100 last year. The parent company income improved during the year as a result of increase in the dividends, declaration from subsidiary. A 70% reduction in the income was due to nonrenewal of the rental agreement with the respected workshop with the Tasees Company for Training and Services. Now we'll go to the ratio analysis for current ratio group company and parent company. The current ratio for the group company, if you see current assets OMR 28 million compared to OMR 19 million for the -- the significant growth also in the parent company OMR 16 million compared to OMR 11 million last year. Current liabilities also increased because of the increase of the income and -- saw that OMR 9,400,000 compared to OMR 6,475,000 increased by -- also on the parent company OMR 408,000 and OMR 402,000 for the last year. Current ratio, which is very important ratio in the group, the 3:1 for including both 2 years and regarding the debt, the company huge amount, [indiscernible] current ratio is an indicator of the liquidity position and working capital of the company. Generally a ratio of 2:1 is considered to be ideal. Recently, current ratio of the company and the group is strong. Profitability ratio. Profitability ratio, we are talking about that operation profit of margin in the group 39% compared to 35%, in parent company 89% compared to 90%. Net profit margin, 35% compared to 30% and the parent company 89% compared to 90%. Net asset ratio, we are talking about in the group, net asset per share OMR 0.478, last year OMR 0.390, in parent company OMR 0.314 compared to OMR 0.246 last year. Basic earnings per share OMR 0.148 for the group and also OMR 0.111 for the group this year -- last year compared to company OMR 0.129 compared to OMR 0.100 last year. I'm Habayeb, Group Financial Controller. Thank you for sharing us with this year result. You are welcome to ask any questions.

Anybody have any questions? So thank you all. I think now we'll do this briefing in Arabic. Mr. Habayeb, you may share the Arabic slides.

Did you see the Arabic?

Where?

One second. Okay.

[Foreign Language]

[Foreign Language]

So again, everybody, if you have any questions, we are here. If not, then we thank you very much for attending, and we'll see you in the next quarter. Thank you very much. Take care.