Free Bird Institute Ltd (FBL), an English language school for international students, announced a net profit before taxes of $360,980 for the six-month period ending June 30, 2024. This marks a decrease from the prior year’s net profit before taxes of $422,299 for the same timeframe.
In a report, FBL’s Chief Financial Officer Roqiqi Korodrau noted that the total income for this year was $2,013,633, reflecting a 4 percent decline from $2,099,203 earned during the same period last year. He attributed this downturn to a 7 percent decrease in service fees, linked to a 4 percent decline in student enrollment.
Mr. Korodrau highlighted that in response to the revenue drop, the management team has taken proactive steps to cut costs. They have successfully reduced personnel expenses by 7 percent and direct operating expenses by 9 percent, leading to an overall expense reduction of 9 percent. “These efforts underscore our commitment to maintaining financial prudence while navigating a challenging economic landscape,” he stated.
Despite the decline in revenue, the disciplined approach to managing expenses resulted in a 14 percent increase in operating profit, which reached $533,856. However, challenges remain, particularly due to foreign exchange losses. The Japanese yen has plummeted to its lowest level since the early 1990s, increasing the cost of international travel and reducing the number of students studying abroad while further intensifying foreign exchange losses for those who do.
“As a result, our net finance cost has risen by $177,876,” Mr. Korodrau explained. He also reported that net assets were at $6.7 million, showing a 6 percent increase since December of last year, while total assets reached $8.7 million, a 3 percent rise from the same period last year.
The increase in net assets by 6 percent compared to the previous year reflects the company’s strategic financial management and its commitment to enhancing overall financial stability.