2014-07-17
Manila, Philippines STI Education Systems Holdings generated revenues amounting toP1,917.6 million for the fiscal year ended March 31, 2014 on the back of increase in the number of students of STI ESG and its subsidiaries from 68,363 to 71,195 students.
In a report submitted to the Securities and Exchange Commission, STI Holdings said the favorable enrollment mix resulted to higher revenues from tuition and other school fees.
West Negros University (WNU) revenues for the six-month period after acquisition contributed P78 million to the increase,ââ¬Â STI Holdings reported.
The company said that tuition and other school fees increased by P265 million or 20 percent from last year's P1,357.3 million, mainly due to the increase in the number of students and the 5,000 students of WNU.
It added that the enrollment mix was more favorable in 2014 than in 2013, as enrollment leaned more towards STI Networks four year programs compared to the two-year programs.
The four-year programs charge higher tuition and bring in more revenue per student.STI Holdings said.
The four-year programs are the Commission on Higher Education approved courses, while the two-year programs are the Technical Education and Skills Development Authority courses.
Ratio in 2014 was 76 percent for four-year programs and 24 percent for two-year programs, as compared to 70 percent and 30 percent, respectively, in 2013.STI Holdings reported.
In addition, iAcademy, another subsidiary, reported a 25 percent increase in number of students, with more enrollees opting for programs with higher tuition.
Key performance indicators of STI Holdings showed improvements as well, with its EBITDA margin improving from last year's 32.9% to 36% for this fiscal year ending March 31, 2014. Its gross profit margin also increased from 68% to 68.4%.
Other figures in its financial statements such as the increase of P4.2 million in revenues from educational services which is a 2 percent increase from last year; sale of educational materials and supplies likewise rose by 8 percent, following the trend of increase in enrollment.
The company also reported increase in cost of educational services by 14 percent from P485.4 million last year to P553 million this year.
This is due to higher faculty salaries and other direct expenses as a result of the increased number of students. Depreciation expenses of the recently completed buildings in STI Ortigas-Cainta and STI Caloocan accounted for P23.5 million of the P67.6 million cost increase,STI Holdings said.
Amidst all these, STI Holdings said it remains on the lookout for existing tertiary schools for possible mergers, acquisitions, or both.
Moreover, STI Holdings is one of the 51 out of 260 Shariah-compliant listed companies considered by the Philippine Stock Exchange with the moral code and religious law of Islam. The Shariah covers the rules, regulations, teachings and values that govern the lives of Muslims.
Also, STI Holdings is included in the list of top 50 Philippine-listed companies evaluated under the Asean Corporate Governance Scorecard. The top listed companies from six participating Association of South-east Asian Nations member-countries were evaluated based on international standards of corporate governance, including the five Organization for Economic Cooperation and Development principles of corporate governance.
