Montinola-led FEU’s 1st half profit grew to P650 million despite higher costs

The Montinola family’s Far Eastern University Inc. (FEU) posted a 7 percent increase in net income to P651.4 million for the first semester of its fiscal year, as revenue gains and stronger investment returns offset higher expenses.

Revenues as of November last year rose 7 percent to P2.34 billion, driven by stable enrollment and tuition growth. 

“The group remains optimistic that it will sustain its sound financial position and positive results of operations in the second half of [school year] 2024-2025,” according to FEU, which is listed on the Philippine Stock Exchange with a market value of P17.8 billion. 

“Management continues to take a conservative outlook of the economy and a prudent stance in the implementation of its overall operational plan,” it added.  

Aurelio R. Montinola III

Far Eastern University Inc. chair 

However, operating expenses jumped 16 percent to P1.78 billion, mainly due to earlier recognition of costs and higher accruals. This led to a 13 percent drop in operating income to P558.5 million.

Non-core income surged, with other income skyrocketing 274 percent to P181 million, fueled by fair value gains and better investment returns. This boost helped push pre-tax income up 8 percent to P739.4 million.

FEU, founded in 1928, is a nearly century-old educational institution that became publicly listed on the Philippine Stock Exchange in 1986. 

It operates as a nonsectarian institution with seven institutes, offering programs in business, law, education, arts, health sciences, tourism, and more. Currently, 60,000 students are enrolled under the FEU brand.