Emirates Driving Company reports strong revenue growth in Q1 2025
A.SREENIVASA REDDY (ABU DHABI)
Emirates Driving Company (EDC), the leading provider of driver education in the emirate of Abu Dhabi, posted strong financial results for the first quarter of 2025, with significant growth across key metrics compared to the same period last year.
According to the documents submitted to the Abu Dhabi Securities Exchange on Monday, revenue for the quarter surged by 85% year-on-year (YoY), reaching Dh167.1 million compared to Dh90.1 million in Q1 2024. The impressive increase was driven by the acquisition of a new subsidiary, geographic expansion, a higher number of enrolled students, and operational efficiency improvements.
Gross profit also rose substantially, up 48% YoY to Dh105.8 million from Dh71.3 million in Q1 2024. However, the gross profit margin decreased to 63% from 79%, reflecting higher direct expenses associated with expanded operations.
Profit before tax grew by 14%, reaching Dh79.7 million, compared to Dh70.2 million a year earlier. Net profit for the period stood at Dh68.8 million, an 8% increase from Dh64 million reported in Q1 2024. The company also benefited from additional income streams, including net gains from financial assets, dividend income, rental income, and interest income.
Despite the strong earnings growth, the company's market capitalisation recorded a slight decline, standing at Dh2.694 billion as of March 31, 2025, down from Dh3.017 billion at the end of 2024. Nonetheless, EDC's market capitalisation has seen a robust 42% growth over the past five years, reflecting continued investor confidence.
Total assets decreased by 8% to Dh1.54 billion in Q1 2025, compared to Dh1.67 billion at year-end 2024, mainly due to dividend payouts totalling Dh183 million.
Since its establishment in 2000, EDC, a subsidiary of Multiply Group, created a strategic partnership with Sweroad, which was governed by the Swedish Transport Administration from 1983 – 2018, for the initial development and continuous improvement of its curricula according to global standards.
The company has formed a joint quality committee with the Abu Dhabi Mobility aimed at ensuring its training programmes and methodologies align with the Emirate's laws.
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