FEU, STI report losses as Phinma, Mapua, CEU dodge pandemic downturn

First, it was the shift to K-12 program. Now, it’s COVID-19. Universities that have just emerged from enrollment and income downturn with the shift to the K-12 system are now finding themselves being sucked into a sea of red ink.

Two of the five publicly-listed educational institutions, Far Eastern University and the STI Group of IT schools, have reported losses due to the coronavirus pandemic.

The three other listed school groups -- the MapuaMalayan-APEC schools, Centro Escolar University, and Phinma Education -- have managed to keep their heads above water, so far.

The STI Group appeared to be the worst hit, reporting a P221-million loss for the first six months of the year, on top of a P246- million loss in the same period last year.

The losses and low enrollment prompted STI owner Eusebio Tanco to close down seven schools and suspended the operations of five others.

FEU, on the other hand, reported a P151.95-million loss as of August, a reversal from the P61.59-million profit the school made in January-August 2019.

Despite the downturn, Phinma Education Holdings squeaked by with a net income of P6.7 million for the first six months of the year even “as no school revenue was recognized from April to June due to the COVID pandemic.”

Phinma’s eight schools reported combined revenues of P905.85 million for the first half of 2020, down from P1.2 billion for the same period last year.

Two other school groups, the Mapua-Malayan-APEC combine and the Centro Escolar University, have even shown improved profitability coming from losses last year, even as classes shifted online.

The Mapua-Malayan-APEC combine reported a firsthalf 2020 net income of P48.6 million, a reversal from a P59.7-million loss in the first half of 2019.

CEU, meanwhile, reported a P52.76-million net income for January to June, overcoming a P156.6-million loss for the same period last year.

Despite the pandemic, CEU in August approved the construction of a five-story dormitory for faculty, employees, and students in its Malolos campus, as well a two-story building for its dentistry school, and another two-story structure to house a food court and commercial shops within the seven-hectare campus.

“Considering the evolving nature of this outbreak, the CEU Group cannot determine at this time the impact to its financial position, performance, and cash flows in 2021,” the 113-year-old institution said in a report to shareholders.

Manila schools lose tax fight vs City Hall

And speaking of FEU, the Manila school has lost in its fight against City Hall over the imposition of local business tax on tuition and educational fees.

The Court of Tax Appeals on Wednesday agreed with the Manila City government that FEU, being a stock-andfor profit organization, is subject to the one percent tax on annual gross sales.

FEU fought the business tax imposition made by then mayor Joseph Estrada, but last year paid under protest to the new administration of Isko Moreno nearly P190 million of the contested tax from 2009 to 2013.

FEU joined CEU, STI, Mapua Institute of Technology, and University of the East in opposing the Manila City government’s imposition of the business tax on school fees.

Heard through the grapevine

The Cebu Country Club, with its once suburban 53-hectare property now engulfed by metropolitan Cebu City, is defying the pandemic downturn, its share price zooming from P6 million in November to P9.5 million as of the last sale, recorded in August.

The latest quote, as of yesterday, was P12 million selling, and P8 million buying.

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