FEU says Sept.-Nov. income down 6% to P665M

LISTED educational institution Far Eastern University, Inc. (FEU) saw a 6% decline in attributable net income for the second quarter of its fiscal year that ends May, driven by higher operating expenses.

In a regulatory filing on Monday, FEU said its attributable net income for the September to November period fell to P664.71 million from P707.35 million in the previous fiscal year.

FEU’s revenues rose 8.7% to P1.59 billion from P1.46 billion previously.

The institution’s operating expenses, however, increased 4% to P880.73 million from P847.21 million in the previous year.

FEU’s operating expenses include depreciation and amortization, insurance, and real property taxes incurred by the organization in relation to investment properties.  

For the first six months, FEU said its attributable net income fell 3.5% to P591.62 million from P613.36 million the previous year.

Revenues  for the period rose 14% to P2.16 billion compared to P1.88 billion, led by the 6% increase in student population as well as higher tuition fees.

The jump in revenues also resulted in a 9% increase in operating expenses to P1.54 billion from P1.41 billion previously.

FEU also expressed optimism that it would sustain its “strong financial position” and “sound operating results” for the remainder of the school year 2023-2024.

“With an increase in group-wide student population during the first semester, the group is positive that it will maintain its enrollment base for the incoming second semester,” FEU said.  

The institution added that it maintains a “conservative outlook” on the national economy.

“With this, the management will continue to be prudent in the implementation of its operations, investment, and business continuity plans, both at the corporate and the academic levels, to mitigate any foreseen negative impacts on the overall operations,” it said.

Shares of FEU at the local bourse were last traded on Jan. 11 at P594.50 apiece. — Revin Mikhael D. Ochave