Business

CEU profits fall 64% due to lower enrollment as free tuition lures students to state universities

Centro Escolar University (CEU), the Mendiola-based university owned by the Yap family, suffered a 64 percent drop in net income in fiscal year ending March 2020 due to a migration by students to state universities and colleges.

In its annual report, CEU reported a a net profit of P67 million in FY 2020 from P187 million in FY 2019. Revenues dropped eight percent to P1.351 billion in FY 2020 from P1.473 billion in FY 2019. CEU raised its tuition fees by five percent in school year 2019-2020.

“For school years 2019-2020, 2018-2019, and 2017-2108, the University registered downward trends in enrollment due to the K-12 program of the government. The downward trend was exacerbated in the school year 2019-2020 due to the free tuition program of the government, which caused a lot of potential enrollees to enroll in State Universities and Colleges instead,” CEU said.

CEU changed its academic year (from June to March to August to May) during the period which resulted to the non-inclusion of April and May tuition fees that would be reflected in FY 2021

CEU – which has campuses in Mendiola, Bulacan, Makati – has been offering online classes for school year 2020-2021 due to COVID restrictions.

Despite the gloomy outlook brought about by the pandemic, CEU’s board approved the re-appropriation of P336 million to expand and upgrade its seven-hectare Malolos campus.

The major shareholders of CEU are the Yap family through US Automotive Co. (49 percent) and Dr. Alejandro Dizon (13 percent).

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