STI nearly triples 2012 earnings

MANILA, Philippines - Listed education firm STI Education Systems Holdings Inc. of businessman Eusebio Tanco nearly tripled its earnings last year as the educational institution enjoyed higher enrolment.

In a regulatory filing, STI said its net income surged 171 percent to P794.2 million in its fiscal year that ended in March, up from P292.6 million a year ago.

This was backed by a six percent increase in revenues to P1.66 billion from P1.57 billion earlier.

STI attributed the uptick to “the increase in the number of students of STI and its subsidiaries from 66,740 to 68,363 students resulting in higher revenues from tuition and other school fees.”

“STI’s enrolment mix was more favorable in 2013 than in 2012, as enrolment leaned more towards the STI network’s four-year programs than the two-year programs,” it added.

Cost and expenses, which include cost of educational services and general expenses, rose nearly six percent to P1.28 billion from P1.2 billion a year ago.

In a statement, STI said it has completed the construction of the STI Academic Center campus in Cainta, Rizal.

“The new campus, which promises to be one of the most modern education facilities in the country, can accommodate 7,800 students,” STI said.

The campus sits on a four-hectare property that features two structures: a three-story building that now serves as the headquarters of STI, and a seven-story building that houses the school.

STI is also preparing for the construction of school campuses in Cubao, Las Piñas, Calamba and Lucena, which are expected to be ready for school year 2014-2015.

“Our expansion strategy reflects our commitment to education and the future of our youth. We aim to continually improve our facilities and upgrade the quality of education we deliver,” said STI president Monico Jacob.

In April, STI signed a deal with the Agustin family for the acquisition of a controlling stake in West Negros University (WNU) Corp., which owns and operates Bacolod City-based West Negros University.

In November, STI raised P2.36 billion through a follow-on offering. Tanco consolidated all his education assets – the STI chain of schools, a 40 percent stake in Philippine Women’s University and iAcademy – under STI, and a 20-percent interest in STI Investments, which holds Tanco’s strategic investment in Philplans, a leading pre-need savings program with plans dedicated to education, and Philcare.