LISTED educational institution Far Eastern University, Inc. (FEU) reported an attributable net loss of P99.76 million for the first quarter of its fiscal year ending May, widening from P73.09 million last year.
First-quarter revenue increased 6% to P616.1 million from P581.25 million as educational revenue surged on better enrollment during the midyear term, FEU said in a stock exchange disclosure on Monday.
However, operating expenses increased by 15% to P753.54 million due to accruals and the earlier timing of certain costs.
Operating loss rose by 80% to P137.44 million.
“First-quarter operations usually result in an operating loss due to the seasonality of tuition revenue recognition. This starts to normalize the following quarter at the onset of first-semester classes in the month of August,” FEU said.
FEU remains optimistic about maintaining a healthy financial position and sound academic operations for the 2024-2025 school year.
“Operationally, student enrollment grew 2%, with greater growth in basic education than in tertiary due to demographic dynamics. Efficiency through effective cost monitoring will remain to be the norm, yet all academic excellence and core student service initiatives are of high priority,” it said.
“Management continues to take a conservative outlook of the economy and a prudent stance in the implementation of investment and overall operational plans,” FEU added.
The company operates Far Eastern University in Manila and is the majority shareholder of East Asia Computer Center, Inc., FEU Alabang, Inc., Far Eastern College Silang, Inc., FEU High School, Inc., and Roosevelt College, Inc.
On Monday, FEU shares dropped 8.4% or P66 to P720 per share. — Revin Mikhael D. Ochave