Far Eastern University of the Montinola family posted better than pre-pandemic earnings in fiscal year ending May 2021 despite lower enrollment and zero face-to-face classes for the entire school year due to the pandemic.
The early adoption of online learning modules along with cost-cutting measures and smart financial decisions of FEU management led by bilyonaryo Aurelio “Gigi” Montinola III enabled one of the country’s biggest educational institutions to flourish despite adverse condition from the pandemic.
FEU profits increased by 43 percent year-on-year to P979.316 million in FY 2021. This is 21 percent better than its P808 million profits in 2019 or before the pandemic struck in March 2020.
FEU’s performance is remarkable considering that enrollment dropped by 11 percent in school year 2020-2021 to 39,361 students (FEU cancelled the third term for trimestral schools). This is much lower than its pre-pandemic enrollment level of 40,713 students.
FEU did not increase its tuition fees and gave special credit considerations (through issuance of an unprecedented number of promissory notes) to ease the effect of economic crisis students’ household.
“Fortunately, the FEU Group of schools invested heavily on this online learning platforms since 2017, as part of its strategic plans, even before the onset of the pandemic,” said FEU.
FEU management also implemented strict cost management measures, better returns from shrewd financial investments, timing of lower interest rates on bank loans, and tax savings due to lowered income tax rates.
Management is optimistic FEU would remain profitable and liquid as the country crawls out of the pandemic.