STI Education Systems Holdings, Inc. (STI Holdings) saw its attributable profit drop by 10% in its fiscal year ending March 2018, weighed down by interest expenses charged to operations.
In a regulatory filing, the listed firm reported a net income attributable to equity holders of the parent of P496 million for the year ending March, lower than the P550.2 million it booked in the same period a year ago.
STI Holdings’ fiscal year from April to March follows that of the academic cycle in the Philippines, since it derives majority of its income from education services.
The owner of among the country’s largest networks of private schools attributed this decline to the increase in interest expenses during the period.
“Interest expenses on loans increased by 177% or P140.2 million year-on-year mainly due to interest incurred on the STI Education Services Group’s bond issue charged to expense,” the company said. — Arra B. Francia