STI’s FY net profit falls 40%
EARNINGS of STI Education Systems Holdings, Inc. dropped by 40% year-on-year even as higher enrollment lifted its revenues by an annual 14%.
In a regulatory filing released on Friday, STI Holdings reported a net income of P644 million in the fiscal year ending March 31, 2017, lower than the P1.1 billion it recorded in the year prior.
The listed firm noted that its profit in 2016 was “largely due to the gain of P553.4 million recognized last year resulting from the dacion of real estate properties in Quezon City and Davao in settlement for non current receivables.”
Meanwhile, STI Holdings booked revenues of P2.93 billion during the period, adding P356.3 million to what it generated in 2016. The company attributed the growth to the increase of enrollees during the period. The number of students across institutions controlled by STI Holdings reached 103,727 in school year 2016 to 2017, 22% higher than the 84,730 students it welcomed in school year 2015 to 2016.
STI Holdings has been expanding in previous years by establishing new campuses and increasing the capacity of existing ones. Last September 2016, the company inaugurated a seven-storey building for STI College Las Piñas, which stands on a 10,000-square meter (sq. m.) property.
In April 2017, the company held groundbreaking ceremonies for campuses in Lipa and Tanauan, Batangas. The seven-storey building in Lipa can house a total of 6,750 students, while the first phase of STI Academic Center Tanauan can accommodate 5,400 senior high school and college students by the next school year.
The Tanauan campus is in partnership with Tony Tan Caktiong, the founder of Jollibee Foods Corp., and DoubleDragon Properties Corp. Chairman and Chief Executive Officer Edgar Sia II.
STI Holdings will further construct two academic centers in Sta. Mesa, Manila and San Jose del Monte City, Bulacan, which can accommodate an additional 10,000 and 6,000 students, respectively. The firm will further be able to welcome 6,000 students in its Davao campus.
The company targets to complete all buildings under construction in time for the start of classes in June 2018.
Shares in STI Holdings slipped by three centavos or 1.9% to close at P1.55 each at the Philippine Stock Exchange on Friday. -- Arra B. Francia