2013-11-15
MANILA, Philippines STI Holdings reported an impressive P454.6 million in net income during the six-month period ending in September 30 this year up by 60 percent from the P283.8 million it gained during the same period last year.
In a quarterly report contained in the SEC Form 17-Q submitted Thursday to the Securities and Exchange Commission and the Philippine Stock Exchange, STI Holdings said the company also generated revenues amounting to P826.9 million during the said period, which is 11 percent higher than the P742.1 recorded in the same period last year.
The 11 percent increase in gross revenues resulted mainly from the increase in the number of students of STI Education Services Group, Inc. and its subsidiaries, STI Holdings said.
The company said that its schools took in a total of 71,195 students this school year, which is 2,832 higher than the number of enrollees during the last school year.
It added that the enrollment mix was more favorable in 2013 as compared to 2012, with more students opting for the four-year programs rather than the two-year programs. The four-year programs are the CHED approved courses while the two-year programs are the TESDA courses.
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. The four-year programs charge higher tuition and bring in more revenue per student, STI Holdings reported.
Tuition also increased by 5 percent for old students and 7 percent for new students, further contributing to the revenues.
In addition, iAcademy, another subsidiary, reported a 44 percent increase in tuition income as the school posted a 25 percent increase in the number of students, with more enrollees opting for programs with higher tuition.
STI Holdings also said it is well on track with its ambitious expansion program. It reported that the company acquired properties in Cainta, Rizal; Las Piñs City; Quezon City and Caloocan City with a combined worth of about P1 billion. The properties will serve as new sites for STI schools in the area.
Just last September, STI Holdings also completed the acquisition of a real estate property with buildings in Batangas City in the amount of P122.1 million. The property will be the new site of the STI Batangas school, whose original franchise was bought back by the company.
It said construction of new schools is also in full swing. STI Holdings said that as of September 30, it has signed construction contracts worth P1.6 billion to ensure that the schools would be completed on schedule.
Property and Equipment increased by 26 percent mainly due to the near completion of construction of buildings for STI ORCA (in Rizal) and the ongoing construction of buildings for STI Cubao and STI Caloocan and the purchase of furniture and equipment for STI ORCA and STI Caloocan, STI Holdings said.
Preparatory work on building construction for STI Calamba has also commenced. This is in line with the planned expansion of the existing facilities of STI-owned schools.
The company also reported shelling out P115.7 million as deposit for the acquisition of West Negros University, one of the big universities in Bacolod City.
