STI Education Services Group Inc., which owns one of the largest networks of private schools in the Philippines, closed down seven schools and suspended the operations of five others on low enrollment turnout caused by the pandemic.
STI-ESG said in a disclosure to the Philippine Dealing & Exchange Corp. it suspended the operations of four company-owned schools for school year 2020-2021, including STI Cebu, STI Iloilo, STI Quezon Ave. and STI Tuguegarao.
It also ceased the operations of STI Pagadian, another company-owned school effective SY 2020-2021.
“STI ESG determined that continuing the operations of these schools was no longer viable due to low enrollment turnout and the high cost of facility rental,” the company said.
Six franchise-owned STI schools or education centers were also shut down amid low enrollment turnout and low market potential in their respective areas. These are STI College Bohol, STI College Recto, Sungold Technologies, STI College Pasay, STI College Dipolog and STI College San Francisco.
STI College Parañaque Inc., another franchise-owned school, also decided to suspend its operations effective SY 2020-2021. STI-ESG said students enrolled in the affected schools were given the option to transfer to other STI schools.
“The suspension and cessation of operations of the STI schools mentioned above will not have a material financial impact on the corporation since most of the affected students will be transferred to other STI schools and the savings on costs outweigh the revenues to be received,” the company said.
The company said that as end-2019, STI-ESG’s network had 76 schools, with 38 company-owned and 38 franchised schools.
It offers degree programs in information technology, business and management, tourism, computer engineering, accountancy, communications and multimedia arts, among others. STI ESG is also offering senior high school.
STI reported a net income of P68 billion out of nearly P2 billion-revenues in 2019.
Meanwhile, STI-ESG approved the sale of 20-percent stake in Maestro Holdings Inc. to Carret Private Investments Limited.
MHI owns 100 percent of the issued and outstanding capital stock of PhilPlans First Inc., 91 percent of the issued and outstanding capital stock of Philippine Life Financial Assurance Corp. and 99 percent of the issued and outstanding capital stock of Philhealthcare, Inc.
Article and Photo originally posted by Manila Standard last September 27, 2020 7:50pm and written by Jenniffer B. Austria.