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 months ending June 30, 2024. This marks a decrease from the $422,299 net profit recorded during the same period the previous year.
FBL’s chief financial officer, Roqiqi Korodrau, stated that the school’s total income for this six-month period amounted to $2,013,633, down 4 percent from the $2,099,203 earned a year earlier. The decline in revenue is attributed to a 7 percent drop in service fees, which is directly linked to a 4 percent decrease in student enrollment.
In response to the revenue decline, the management team has implemented cost-saving initiatives, successfully reducing personnel expenses by 7 percent and direct operating expenses by 9 percent, leading to an overall expense reduction of 9 percent. Mr. Korodrau emphasized the company’s commitment to financial prudence amid economic challenges.
Despite the decrease in revenue, disciplined expense management resulted in a 14 percent increase in operating profit, which reached $533,856. However, the company continues to face difficulties due to foreign exchange losses, particularly from the Japanese yen, which is currently at its lowest level since the early 1990s. This situation increases the cost of international travel and has affected the number of students studying abroad, contributing to additional foreign exchange losses.
As a result of these factors, net finance costs have risen by $177,876. Mr. Korodrau also reported that net assets increased by 6 percent to $6.7 million compared to December of last year, while total assets reached $8.7 million, reflecting a 3 percent increase from the same period last year.
“This growth reflects our strategic financial management and commitment to enhancing our overall financial stability,” he noted.