The Free Bird Institute Ltd (FBL), an English language school for international students, has announced a net profit before taxes of $360,980 for the six-month period ending June 30, 2024. This represents a decrease from the previous year, where the company reported a net profit before taxes of $422,299 for the same timeframe.
Chief Financial Officer Roqiqi Korodrau indicated that FBL’s total income for the first half of this year was $2,013,633, marking a 4 percent decline from the $2,099,203 earned in the corresponding period last year. The drop in income has been linked to a 7 percent reduction in service fees, which is associated with a 4 percent decrease in student enrollment.
In response to the revenue decline, the management team has implemented various cost-saving measures, successfully reducing personnel expenses by 7 percent and direct operating expenses by 9 percent, achieving an overall expense reduction of 9 percent. Mr. Korodrau emphasized the company’s dedication to financial prudence while navigating difficult economic conditions.
Despite the revenue downturn, disciplined expense management has led to a 14 percent increase in operating profit, totaling $533,856. However, Mr. Korodrau noted that the company continues to encounter significant challenges due to foreign exchange losses, particularly stemming from a weakened Japanese yen, which has increased international travel costs and impacted student numbers studying abroad. As a result, net finance costs rose by $177,876.
As of now, FBL’s net assets stand at $6.7 million, reflecting a 6 percent increase compared to December of last year, while total assets have reached $8.7 million, a 3 percent rise from the previous year. The growth in net assets signifies the company’s strategic financial management and commitment to enhancing financial stability.