STI posts 42% growth in net profit
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 enrolment and greater take-up of higher-valued programs.
For the three-month period, STI reported an increase of 4 percent in the number of students to 71,195 for school year 2013-2014, 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 P24.7 million during the quarter compared to the same period last year.
Apart from the increase in enrollees, the network reported a favorable enrolment mix in 2013 with more students preferring STI’s four-year programs than the two-year programs. The four-year programs charge higher tuition and bring in more revenue per student.
“The 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 than the level last year.
On the other hand, cost of educational services declined 7 percent to P83 million year-on-year due to the decrease in faculty salaries and other direct expenses.
STI Holdings is in the middle of a big expansion program in anticipation of a further increase in enrolments 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 October this year.
Construction of STI Cubao is expected to be completed by March 2014. STI further plans to construct new buildings for five campuses in Cagayan de Oro, Calamba, Cebu, Davao and Lucena. Due-diligence audit prior to the purchase of a university in the Visayas has also been completed. Doris C. Dumlao
