STI Holdings says revenues up 17% but depreciation expense weighs on income 

STI Education Systems Holdings Inc. grew its revenues by 17 percent to P1.594 billion in the first nine months of the fiscal year ending December 2014, from P1.364 billion a year earlier, driven by increased enrollments in the STI network and West Negros University.

 

Net income, however, dropped to P459.8 million from P584.3 million in the same comparable period. 

 

The company said it was "largely due to increased depreciation expenses on completed school facilities."

 

The situation was "... anticipated with the construction of new schools as STI Holdings just recently built six academic centers in Ortigas Cainta, Cubao, Calamba, Caloocan, Batangas, and Lucena as part of its ongoing massive expansion," the company disclosed to the Philippine Stock Exchange Wednesday.

 

"STI Holdings expects to bounce back from the depreciation costs in the years following the completion of construction as new students are expected to come with upgraded facilities," the company said.

 

The company registered 80,200 students enrolled in schools owned by STI Holdings, up 5.3 percent higher from 76,195.

 

Enrollment in West Negros, which was in October 2013, reached 6,466 students in school year 2014-2015 from 5,000.

 

"As a result, income from tuition and other school fees increased by P229 million to P1.37 billion compared to the previous year's figure of P1.141 billion," STI Holdings said.

 

The company said its earnings before interest, depreciation and amortization climbed 21 percent to P670.8 million from P552.5 million.

 

Income from operations grew by 7 percent to P437.6 million. – Kathryn Mae P. Tubadeza/VS, GMA News