STI nets P185.3 million in 2nd quarterBy Doris C. Dumlao |Philippine Daily Inquirer
MANILA—STI Education System Holdings Inc. grew its net profit in the quarter ending June by 41.8 percent year-on-year to P185.3 million on higher student enrollment as well as longer and more expensive education programs.
For the three-month period, STI reported an increase of 4 percent in the number of students to 71,195 for this school year 2013-2014 compared to the previous school year, based on a report to the Securities and Exchange Commission.
In peso terms, STI increased its net income by P54.7 million and revenues from tuition by P24.70 million during the quarter compared to the same period last year.
Apart from the increase in enrollees, the network reported a favorable enrollment mix in 2013, with more students preferring to enroll in STI’s four-year programs than the two-year programs. The four-year programs charge higher tuition and bring in more revenue per student.
“Ratio in 2013 was 75 percent four-year programs and 25 percent two-year programs, as compared to 70 percent and 30 percent, respectively, in 2012, ” STI reported.
The higher enrollment translated to an 11 percent increase in revenues from tuition and other school fees to P252.4 million from the level a year ago.
STI also reported P42.8 million in revenues from educational services, 7 percent higher more than a year ago.
On the other hand, cost of educational services declined by 7 percent to P83 million year-on-year due to the decrease in the faculty salaries and other direct expenses.
STI Holdings is in the middle of a massive expansion program, in anticipation of further increase in enrollments in the coming years. The Ortigas-Cainta campus has been completed and the planned transfer of the headquarters of STI ESG has been implemented. The school campus is now in operation. The 11-story Caloocan campus has also been completed and will be ready by the end of October this year.
Construction of STI Cubao has also started and is expected to be completed by March 2014. STI further plans to construct new buildings for five campuses located in Cagayan de Oro, Calamba, Cebu, Davao and Lucena. Due diligence audit for the purchase of a university in the Visayas has also been completed
STI has also invested in a number of expansion projects for company-owned campuses including a 5,000-square-meter property at the heart of the central business district of Naga City.
The company likewise “remains on the lookout for existing tertiary schools for possible mergers, acquisitions, or both.”