STI Education Systems Holdings, Inc. reported gross profit P890.7 million for the six months ending September 30, up 5 percent from P851.7 million posted in the same period last year.
For the quarter ending September, the company said net income reached P269.8 million, reversing the net loss booked in the preceding three-month period.
STI incurred a net loss of P440 million in the quarter ending June due to losses posted by affiliate PhilPlans, which decided to an early adoption of the Insurance Commission’s mandated discount interest rate of 6 percent for valuing its pre-need reserves.
The company follows a fiscal year of from April to March, and the three months ending September 30 therefore form part of its second quarter period.
STI said gross profit margin for the six months dipped from 66 percent to 65 percent because of the fewer number of enrolees to its Commission on Higher Education (CHED) programs.
For the current school year, it said 42 percent of its 105,031 students belong to the CHED programs versus 56 percent of the 103,727 it took in last year.
“The Group’s experience is that higher revenues and higher margins are derived from CHED students,” the company said.
With the new batch of first year students in 2018, STI said it is ramping up its expansion with the recent acquisition of parcels of land in Lipa and Legazpi worth P99.1 million and P74.7 million, respectively. These newly acquired lands will be the new sites for STI Lipa and STI Legazpi.
The company is currently building STI campuses in Lipa, Sta. Mesa, Pasay-EDSA, and San Jose del Monte, all expected to be completed in June 2018.