2018-02-14
STI Holdings posts Php259 million in three-month net income
MANILA â STI
Holdings today reported a net income amounting to Php258.7 million during the
past three months ending December 2017, which is about 218 percent higher than
the Php81.4 million it posted during the same period the previous year.
In a quarterly
report submitted Tuesday to the Philippine Stock Exchange, STI Holdings said
gross revenues during the same three-month period reached Php860.3 million, up by Php23.2 million from same period last year of Php837.1 million. Gross profit likewise increased by Php24.1
million year-on-year.
The company
follows an April to March fiscal year mirroring that of an academic cycle in
the Philippines since bulk of its income comes from its education services. The
three months ending December 31, 2017 form part of the companyâs third quarter
period.
As for the
entire nine-month period ending December 2017, STI Holdings said gross profit
increased by Php63.1 million or 4 percent, year-on-year.
The company also
generated gross revenues of about Php2.2 billion, up by five percent or Php109.5
million from same period last year of Php2.1 billion.
In June 2017,
the companyâs subsidiary STI Education Services Group (STI ESG) which manages
STI-branded schools made the strategic decision to dispose of its 20% stake in
Maestro Holdings in order to focus on its core business of providing quality
educational services.
As a result,
equity in net gains/losses of said affiliate is no longer recognized after June
2017. The company consequently registered a net income during the second and
third quarters bringing its nine-month income to Php88.5 million, even as it
reported a net loss of Php440.0 million during the first quarter period ending
June 30, 2017.
The said loss
was largely due to the costs its affiliate company PhilPlans incurred when it
decided to adopt early the Insurance Commissionâs mandated discount interest
rate of six percent for valuing its pre-need reserves.
STI Holdingsâ
total assets as of December 31, 2017 now stands at Php14.8 billion, more than
half a billion higher than what was reported as of March 31, 2017.
Property and
equipment increased to Php7.8 billion, which is 13 percent or Php919.4 million
higher than March 31, 2017âs balance of Php6.9 billion. This reflects the continuing expansion
projects taken on by the company.
For instance,
STI ESG recently acquired parcels of land in Lipa and Legazpi amounting to
Php99.1 million and Php76.4 million, respectively
Construction
projects are either just completed or ongoing in STI Malaybalay, STI Sta. Maria
in Bulacan, STI Lipa, STI Sta. Mesa, STI Pasay-EDSA, and STI San Jose del
Monte.
These projects
are expected to be completed this year, in time for the influx of college
freshmen who took up two years of senior high school, under the governmentâs K
to 12 program.
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