2017-11-17
MANILA STI
Holdings today reported a gross profit of P890.7 million for the six-month
period ending September 30, 2017, which is five percent higher than the P851.7
million it earned during the same period last year.
In a disclosure
to the Philippine Stock Exchange, STI Holdings said despite the increase, the
companys gross profit margin for said period decreased from 66 percent to 65
percent because of the fewer number of enrolees to its Commission on Higher
Education (CHED) programs.
For the current
school year, 42 percent of its 105,031 student population belong to the CHED
program, versus the 56 percent of the 103,727 it took in last year.
While enrolees
to the senior high school program increased this year, 56 percent to the
previous years 39 percent, STI Holdings admitted, The Groups experience is
that higher revenues and higher margins are derived from CHED students.
The company,
however, said, The new batch of CHED first year students is expected to come
starting SY 2018-2019.
With the
expected surge in the enrolment on the CHED program next year, STI Holdings
said it is shifting to high gear its expansion projects.
For instance,
its subsidiary, STI Education Services Group, recently acquired parcels of land in Lipa and
Legazpi amounting to P99.1 million and P74.7 million, respectively. These newly acquired land will be the new
sites for STI Lipa and STI Legazpi.
The company said
construction for STI Lipa, STI Sta. Mesa, STI Pasay-EDSA, and STI San Jose del
Monte are expected to be completed in June 2018.
In the same
disclosure, STI Holdings reported a P269.8 million in net income for the
three-month period ending September 30, 2017, a welcome development after the
company registered losses in the previous quarter of the current fiscal year.
Last August, the
company reported losses for the three-month period ending June 30, 2017,
amounting to P440.0 million, due to the loss posted by its affiliate company
PhilPlans, which decided to an early adoption of the Insurance Commissions
mandated discount interest rate of 6 percent for valuing its pre-need reserves.
STI Holdings also
generated gross revenues of P883.9 million, up by P14.1 million from same
period last year of P869.8 million.
Gross profit likewise increased by P19.8 million year-on-year.
STI Holdings
follows an April to March fiscal year mirroring that of an academic cycle in
the Philippines because bulk of its income comes from its education services.
The three months ending September 30, 2017, thus, form part of the companys
second quarter period.
