FEU, CEU report quarterly losses

LISTED educational institutions reported losses for their first quarter ending in August this year with Far Eastern University, Inc. (FEU) trimming its attributable net loss to P40.35 million, while Centro Escolar University (CEU) swung to a loss of P80.89 million.

Both institutions have a fiscal year ending in May.

“The group’s first-quarter results translated to a significant improvement compared to the previous year, still reporting, however a net loss,” FEU said.

FEU narrowed its net loss attributable to owners of the parent company by 73% during the first three months of its fiscal year, finishing with P40.35 million from P148.8 million year on year. It said the first quarter of each school year is “generally expected to report a net loss due to timing of revenue recognition” once classes begin.

FEU’s topline went up by 43% to P407.64 million from P284.64 million. Its operating expenses inched up by 14% to P502.09 million from P439.21 million in the same period last year.

The university said it expects to have a “sound financial position and a more stabilized operating results” after opening the school year with around 44,000 students group-wide, which is more than its usual enrollees pre-pandemic.

“The group looks forward to [the] resumption of face-to-face classes because of the government’s more intensified vaccination program and its efforts to slowly open the economy,” said FEU, adding that it “remains conservative” with its outlook on the financial market and the economy.

CEU, on the other hand, recorded a net loss of P80.89 million for its first quarter this year. Its bottom line is a turnaround from the P52.77-million profit logged in the same period last year.

Revenues of CEU decreased to P237.27 million, which is 9% less than last year’s P261.65 million. Its expenses surged by 52% to P318.16 million from P208.88 million.

“For school year 2021 to 2022, CEU approved the improvements of internet connection. It also approved the improvements of rooms, classroom and various laboratories to [conform] with the safety requirements of government agencies in preparation for face-to-face classes,” CEU said.

On Monday, shares of FEU at the stock exchange went down by 4.31% or P25 to close at P555 apiece. CEU shares were last traded on Oct. 4 for P6.69 each. — Keren Concepcion G. Valmonte