STI Education Systems Holdings Inc. said it recorded a net income of P101.7 million in its fiscal year ending June 30, a turnaround from the previous year’s net loss of P117.5 million, despite the drop in enrollment.
The company, which owns a network of schools, said the turnaround was due to the group’s cost management measures, as operating expenses dropped by 16 percent to P1.03 billion from the previous year’s P1.21 billion.
Gross revenues for the year reached P2.09 billion, down by 17 percent from P2.52 billion last year.
Tuition and other school fees amounted to P1.88 billion, a decline of P374.8 million or 17 percent from the same period last year, due to the lower number of enrollees.
“Even as enrollment dropped due to the pandemic, we purposely chose to stay committed to the education of youth in these challenging times. In doing so, we innovated our technology-enhanced programs that will enable our students to continue learning even through a different setup to ensure their health and safety,” STI President and CEO Monico V. Jacob said.
The group registered an enrollment of 70,223 students for its school year 2020-2021, down by 16 percent from the previous year’s 83,967.
Based on the company’s sustainability report, enrollment in private schools nationwide dipped in school year 2020-2021 due to the impact of the pandemic.
In particular, a survey by STI Education Services Group, the largest of the group’s three educational institutions, showed that some students did not pursue education in the last school year due to financial difficulties.
“While our learning setup has worked this past school year, we certainly are looking forward to better and brighter times ahead. With the downtrend in the number of new Covid-19 cases, we hope to be able to return soon to a flexible blended learning mode that is a mix of online and face-to-face classes and hands-on learning activities, which would benefit our students and faculty members in the long run,” Jacob said.
The group’s cash and cash equivalents also went up by 76 percent to P1.47 billion from P836.2 million last year, as net cash generated from operations amounted to P714.2 million.
The group netted P147.2 million from investing activities, particularly the sale of STI ESG’s stake in Maestro Holdings for P480.5 million, which in turn, funded P281.9 million in capital expenditures.
Beginning SY2020-2021, STI’s fiscal year starts on July 1 and ends on June 30 the following calendar year.