Free Bird Institute Ltd (FBL), an English language school catering to international students, has announced a net profit before taxes of $360,980 for the six-month period ending June 30, 2024. This figure represents a decline compared to the $422,299 net profit reported for the same timeframe last year.
Chief Financial Officer Roqiqi Korodrau highlighted that the total income for this period stood at $2,013,633, indicating a 4 percent decrease from $2,099,203 in the previous year. He attributed this dip primarily to a 7 percent reduction in service fees, which correlates with a 4 percent drop in student enrollment numbers.
To address the revenue decline, Korodrau noted that the management team has actively implemented cost-saving strategies. Personal expenses have been reduced by 7 percent while direct operating expenses have dropped by 9 percent, leading to an overall expense reduction of 9 percent.
“Despite the revenue decline, our disciplined approach to expense management has resulted in a 14 percent increase in operating profit, reaching $533,856,” he stated.
However, he pointed out the significant challenges posed by foreign exchange losses. The Japanese yen is currently at its lowest level since the early 1990s, which has increased the cost of international travel. This has negatively impacted the number of students studying abroad and intensified foreign exchange losses for those who do choose to travel.
As a result, the net finance cost has risen by $177,876.
Korodrau also reported that net assets reached $6.7 million, reflecting a 6 percent increase from December of last year. Total assets amounted to $8.7 million, which is a 3 percent increase from the same period last year. Net assets have shown a similar growth of 6 percent on an annual basis.
“This growth reflects our strategic financial management and commitment to enhancing our overall financial stability,” he added.