LISTED EDUCATIONAL institutions Far Eastern University, Inc. (FEU) and Centro Escolar University (CEU) reported improved financial performances in the first quarter of their fiscal years both ending in May.
In a stock exchange disclosure on Monday, FEU said it posted a P73.09-million net loss attributable to the owners of the parent company for the first quarter ending August, down from the P93.99-million net loss in the same period last year, due to higher revenues.
“The current period net loss was reduced on account of better operating results from core school operations. First quarter results are usually at the lowest due to the seasonality of tuition revenue recognition,” FEU said.
FEU said its revenues rose 35% to P568.64 million from P421.95 million a year ago led by higher educational revenue, which increased 35% to P563.07 million.
“Educational revenues growth resulted from increase in student population coupled with a modest increase in tuition fees,” FEU said.
FEU also disclosed that its operating loss dropped 46% to P76.30 million from P142.06 million due to higher revenues.
“Operating loss declined by 46% as revenues increased, backed by a 6% increase in student population and a modest increase in tuition fees,” FEU said.
According to FEU, its operating expenses rose 17% to P657.55 million compared to P564.05 million.
“Salaries and employee benefits expense increased due to higher faculty head count as well as the upward salary rate adjustments that took effect at the start of the current year. Utilities and communication expense went up on account of increased electricity and water consumption,” FEU said.
“Outside services expense increased mainly on account of increased service utilization for janitorial and security services, while finance cost surged as a result of higher interest rates on bank loans,” the company added.
Meanwhile, FEU said it is optimistic that it would maintain a healthy financial position for the rest of the school year (SY) 2023-2024.
“The group is optimistic that it will sustain a healthy financial position and sound operating results for the SY 2023-2024, especially with an increase in group-wide student population during the first semester,” FEU said.
In a separate regulatory filing, CEU said its first-quarter net income rose 106% to P147.41 million from P71.46 million last year.
The company’s revenues also improved 21.5% to P500.91 million compared with P412.45 million a year ago led by higher tuition and other school fees, which jumped 23.3% to P444.23 million.
CEU’s operating expenses climbed 3.67% to P353.50 million versus P340.99 million last year.
“CEU operations are generally affected by seasonality. There is usually a 10% to 12% drop in the number of students in the second semester, as compared to the first semester,” the company said.
On Monday, shares of FEU at the local bourse declined P5 or 0.86% to P575 apiece while CEU shares fell 20 centavos or 2.31% to P8.45 each. — Revin Mikhael D. Ochave