FAR Eastern University, Inc. (FEU) swung to a loss in its first quarter, ending August as a result of lower enrollments and tuition fee discounts because of the coronavirus pandemic.
In a regulatory filing, the listed school operator said its attributable net loss stood at P148.8 million in the three months from June to August, reversing its attributable net income of P32.98 million in the same period last year.
Its revenues were halved to P284.64 million, which includes not only the 51% decline in educational revenues, but also some P38.1 million in non-recurring income from selling condominium units last year.
“Total revenues declined by 51%, mainly due to the drop in educational revenues resulting from decrease in enrollment during the midyear term and FEU’s movement of the start of first semester classes towards the end of August, affecting the timing of revenue recognition,” it said.
“Moreover, tuition fee charges were discounted as all classes were conducted using online mode, as compared to the regular tuition fees for the traditional classroom instruction,” it added.
While its topline declined, its operating expenses was also lessened by 24% to P439.21 million because of the implementation of online classes.
The company’s student population stood at 39,361 for the first semester of academic year 2020-2021, down 11% from last year’s 44,069.
“The consolidated financial position and the consolidated results of operations of the group are expected to remain operationally stable at its core until yearend. However, it anticipates certain drop in revenues and net income, while managing expenses to remain flat if not constrict,” it said.
FEU operates campuses in Manila, Quezon City, Cavite, and Alabang. It also owns FEU Senior High School in Manila and Roosevelt College in Marikina. — Denise A. Valdez