STI Education System Holdings Inc. saw a 21-percent decline in its nine-month net income from April to December 2014 on increased depreciation expenses and higher costs, among others.
STI said its net income went down 21 percent to P459.8 million in the first three quarters of its fiscal year ending March, from P584.3 million a year earlier.
“[The decline was] due to increased depreciation expenses on 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,” the educational institution said.
Meanwhile, the STI Group recorded a 17-percent increase in revenues to P1.59 billion from P1.36 billion in the previous year on increased enrollment in STI schools and in West Negros University, which was included this year.
For its fiscal third quarter alone, STI’s net income went up to P277.3 million from 2013’s P129.7 million and revenues likewise improved 15 percent to P619.3 million from P537.5 million a year earlier as it saw an increase in the number of students.
The company has opened four campuses so far this year in Batangas, Calamba, Cubao and Lucena.
Courses offered in STI schools include Information and Communications Technology, Business and Management, Tourism and Hospitality Management, Arts and Sciences, and Engineering.
The company has four STI schools in Cagayan de Oro, Cebu, Davao, Las Pinas that are undergoing construction, which are also set for launching this year. STI Chairman Eusebio Tanco earlier said that STIwill be having more land acquisitions this year to build more universities.
To date, STI has spent P2.2 billion of the P5 billion allotted for its land acquisition and expansion plans.
With the addition of the four ongoing campuses, STI will raise its capacity to 45,000 students from 41,000 students. STI’s enrollees increased to 11,523 students for school year 2014 to 2015 from the 8,618 students enrolled in the school year 2013 to 2014.
Adding the four campuses to its construction phase, STI has already 19 schools including iACADEMY and Makati Medical Center College, both in Makati City, as well as West Negros University in Bacolod City.
Aside from the four campus that are undergoing construction and the four that were launched so far this year, other STI campuses are situated in Bonifacio Global City, Naga, Fairview, Alabang, Novaliches, Malolos, Ortigas-Cainta, and Caloocan.