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STI Education Systems says operating expenses pared its net income


STI Education Systems Holdings Inc. on Tuesday reported a drop in its net income during the academic year 2017-2018, despite having breached the P3-billion revenue mark.

In a regulatory filing on Tuesday, STI said its net income slipped to P502.8 million from P558.4 million given the “substantial” increase in operational expenses.

Interest expense on loans—incurred by the STI Education Services Group’s (STI ESG) bond issue—increased by 177 percent.

Gross revenue grew by 5 percent to P3.08 billion from P2.93 billion.

Gross profit expanded by P80.5 million to P2.07 billion from P1.99 billion

STI Holdings follows an April-to-March fiscal year, mirroring the academic cycle in the Philippines as the bulk of its income is derived from education services.

“STI Holdings ... attributes the revenue growth to the steady increase in the number of enrollees in STI ESG owned and franchised schools, as well as in iACADEMY and STI WNU,” the company said.

STI Holdings’ subsidiaries offer tertiary education and the Senior High School (SHS) program. iACADEMY also provides niche courses in computing, business and design.

STI West Negros University (WNU) is the company’s educational system in Bacolod City.

For the school year 2017-2018, STI said 105,031 students enrolled in schools within its network—compared with 103,727 during the previous school year. —Jon Viktor Cabuenas/VDS/RSJ, GMA News

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