STI Holdings reverts to profitability, nets P101.7M

Schools network operator STI Education Systems Holdings Inc. saw its bottom line return to profitability as it booked a net income of P101.7 million for the fiscal year that ended on June 30, 2021.

In a disclosure to the Philippine Stock Exchange on Friday, STI Holdings said its net income for the period is a reversal from the net loss of P117.5 million recorded in the same period last year.

The company attributed the positive performance to its cost management measures, as operating expenses dropped by 16% or P189 million from P1.21 billion to P1.03 billion.

Citing its sustainability report, STI Holdings said enrollment in private schools nationwide dipped in the school year (SY) 2020-2021 due to the impact of the COVID-19 pandemic.

In particular, a survey by STI Education Services Group (STI ESG) – 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.

Despite this, STI Holdings said it still registered an enrollment of 70,223 students for SY 2020-2021.

“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,” said STI Holdings president and CEO Monico Jacob.

“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,” he added.

The company said it generated P714.2 million from its operations.

It also booked 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 SY 2020-2021, STI Holdings’ fiscal year starts on July 1 and ends on June 30 the following calendar year.—AOL, GMA News