STI Holdings net income jumps 12% to P731.4M

Education network operator STI Holdings booked a 12-percent growth in net profit to P731.4 million for the fiscal year ending March 2015 as a record turnout in school enrolment boosted revenues.

For the fiscal year, STI reported that revenues breached the P2-billion mark, rising by 16 percent to P2.2 billion.

In a statement, STI Holdings attributed the full-year performance to the 5.3-percent increase in the number of students of STI Education Services Group (ESG) and its subsidiaries to 80,200 from 76,195 in the previous year.

Enrolment in STI West Negros University, which was acquired in 2013, reached 6,466 students in school year 2014-2015 against last year’s 5,000 students. This number included the students from the former STI Bacolod, which had been integrated into STI WNU.

Collection of tuition and other school fees increased by 19 percent to P1.9 billion in the last fiscal year.

STI Holdings also reported a more favorable student mix in 2015 than in 2014, as enrolment leaned more toward the group’s four-year programs, thus yielding higher revenue per student than the two-year programs.

“Ratio for 2015 was 82 percent four-year programs and 18 percent two-year programs, as compared to 76 percent and 24 percent, respectively, in 2014,” STI said.

STI Holdings said the group’s aggressive expansion also beefed up its resources. The company posted a total of P10 billion in assets, 21-percent higher than the level in the previous year. This developed as the group booked more property and equipment, amounting to P5.6 billion, following the completion of construction and renovation of more buildings in various campuses.

The group has completed construction of new school buildings for STI Batangas, STI Calamba, STI Cubao and STI Lucena. It is also set to inaugurate in September a 1,300-square-meter gymnasium in STI Ortigas-Cainta that will be open to both students and the general public. New classrooms were also constructed in STI Ortigas-Cainta, STI Novaliches and STI Caloocan to accommodate an increase in student population.

Meanwhile, two parcels of land in Bulacan with a total area of 4,178 square meters were acquired for P154.4 million in April 2014. Plans are underway to construct a campus in this new location.