THE education arm of the Yuchengco Group of Companies said it remains on track to reach its targets for 2017, amid a 35% drop in consolidated earnings in the first quarter due to the decrease in college freshmen enrolment with the implementation of the K-12 program.
IPeople, Inc., which operates Mapua University, said in a statement that its Senior High School (SHS) program could mitigate the effects of the K-12 program on the company’s financial performance.
The listed firm posted earnings of P136 million in the first three months of 2017, lower than the P209 million it delivered in the same period in 2016 following a 15% year-on-year decline in consolidated revenues to P543 million.
“Based on Q1 results, we are on track to meet our 2017 targets. Moving forward, iPeople anticipates a significant boost in returns as it continues to expand its reach and innovate its educational system to remain competitive in the global area,” iPeople President Reynaldo B. Vea was quoted as saying in the statement.
The opening of the SHS program allowed Mapua University and Malayan Colleges Laguna (MCL) to collectively take in 1,985 SHS students in academic year (AY) 2016 to 2017.
For AY 2017 to 2018, the listed firm noted an average 22% increase in SHS Grade 11 enrolment in the two campuses, whereas enrollees in MCL alone increased by 33% to 1,338 students.
IPeople also said that the construction of its P2-billion campus in Davao City remains on schedule. The new school, set to be named Malayan Colleges Mindanao, can accept a minimum of 8,000 students and will start opening its doors to its first batch of freshmen and grade 11 students by June 2018.
Incorporated in 1989, iPeople’s portfolio involves both education and information technology. The latter’s main operating subsidiaries are Malayan Colleges, Inc. (MCI) and the Pan Pacific Computer Center (PPCC).
MCI also has two other wholly owned subsidiaries, the Malayan Colleges Laguna and the Malayan High School of Science. PPCC, on the other hand, provides the IT-related requirements of the Yuchengco Group of Companies, which include hardware, software and IT-related services.
Shares in iPeople slipped by two centavos or 0.16% to close at P12.66 each at the Philippine Stock Exchange on Tuesday. — Arra B. Francia