STI profit surges over 300% on strong student enrolment
Business tycoon Eusebio Tanco’s STI Education System Holdings said net income soared over 300 percent in its fiscal year ending in June as school enrolments recovered from the pandemic slump.
The operator of STI Colleges said on Wednesday net income from July 2021 to June 2022 hit P416.2 million versus P101.7 million a year ago.
Total revenue also rose 28 percent to P2.7 billion as enrolments jumped 18 percent to 82,629 students for the current school year.
“Apart from the increase in enrolment, the schools also noted an improvement in the enrollment mix with the 40 percent increase in the number of students enrolled in courses regulated by the Commission on Higher Education,” STI said in a stock exchange fling on Friday.
STI’s fiscal year starts on July 1 and ends on June 30 the following year.
Meanwhile, gross profit increased to P1.7 billion from P1.2 billion the previous year while operating income reached P568.6 million, up 250 percent.
It said earnings were supported by higher tuition rates and other school fees of P2.4 billion versus P1.9 billion the previous year.
“Schools under the network contributed to the improved bottom line, while prioritizing investment in faculty as well as solutions to provide better quality of education for students,” STI said in the filing.
Moreover, instructors’ salaries and benefits increased to P359.4 million from P286.1 million to support its enlarged student population.
Salary adjustments were also implemented among senior high school teachers who passed the licensure examination for teachers and tertiary instructors who have earned a master’s degree as part of the faculty members’ continuing professional education.
STI said it continues to implement online and onsite education formats that were introduced the previous year.
The platforms use “digital tools and online technology combined with invaluable hands-on practice and onsite engagements to achieve the students’ academic objectives through a responsive learning experience”, the disclosure showed.