Higher depreciation charges down STI Holdings' Q3 income 46%

Despite higher revenues from increased enrollments, STI Holdings Inc. reported net profits narrowed down by nearly half in the third quarter on higher depreciation expenses from new campuses.

 

In a regulatory filing with the Philippine Stock Exchange, STI said net income July to September stood at P142.9 million, 46 percent narrower than the P269.3 million a year earlier.

 

Gross revenues improved by 20 percent to P596.2 million from P496.5 million, "driven by the increased enrollment in the STI network and West Negros University."

 

In October 2013, STI Holdings acquired West Negros University in Bacolod City, a school which offers pre-elementary, elementary, secondary and tertiary education and graduate courses. 

 

However, improvement in revenues was offset by a 44 percent jump in gross expenses to P451.3 million from P313.4 million a year earlier, mainly on depreciation charges.

 

The depreciation charges were a reflection of completed school facilities, additional costs of utilities and security services, and substantial decline in the group’s equity share in net earnings of associates and joint ventures.

 

Encompassing depreciation charges were the school in-campus buildings of STI-Cubao and STI-Calamba, the building renovation for STI-Batangas, and the purchase of school furniture and equipment for these campuses.

 

Equity from net earnings of associates and joint ventures decreased by P309.3 million due to losses of some associates.

 

STI-Lucena recently held a topping off ceremony in time for school year 2015-2016. 

 

Despite hefty consolidated revenues in the nine months to September, net income declined by 59.8 percent to P182.4 million from P454.6 million.

 

Consolidated revenues rose 18 percent to P975.1 million from P148.2 million.

 

Based on the latest summary of enrollments in subsidiaries, 74,002 were enrolled in the STI network of schools, compared with 70,107 reported during the previous school year.

 

WNU and iAcademy also posted a higher number of students for school year 2014-2015, bringing the total number of students in schools owned by STI Holdings to 80,200. – Danessa O. Rivera/VS, GMA News