iPeople allots P2B for Davao School

Date Published: July 4, 2016

Source: Business World Online 

THE EDUCATION arm of the Yuchengco Group of Companies is set to open by 2018 a school in Davao City as it expands its footprint nationwide.

Listed iPeople, Inc., the operator of Mapua Institute of Technology, on Tuesday said it will allot P2 billion in capital expenditure for the new Mapua school to be named Malayan Colleges Mindanao.

iPeople President Dr. Reynaldo B. Vea said Mapua school system has about 22,000 students across its three campuses — Intramuros, Makati, Laguna and a high school in Pandacan — which translates to a compounded annual growth rate of 7% over the last five years.

“iPeople, Inc., which controls the interests of the House of Investments in education and information technology will further expand its footprint in the education sector… as it invests in a campus in Davao City,” the listed firm said in a statement on Tuesday.

House of Investments Chief Operating and Finance Officer Gemma O. Cheng was quoted as saying the capital expenditure for Malayan Colleges Mindanao is set at P2 billion.

House of Investments is the holding company of the Yuchengcos and is the parent company of iPeople.

In support of the government’s K to 12 program, Mr. Vea also said starting this year, the Intramuros, Laguna and Pandacan campuses will accept students for senior high school.

The school currently offers master’s degrees across all engineering fields as well as several doctorate degrees.

Earlier, House of Investments Vice-President for Finance Ring F. Joven said school-related operations accounted for around 90% of the revenue of iPeople.

iPeople’s consolidated revenues rose 5% to P2.4 billion in 2015, with the bulk of gains coming from its education business. Education-related revenues jumped 8% to P2.24 billion last year.

This pushed consolidated income 7% higher to P799 million last year, from P745.6 million in 2014.

The company attributed its strong 2015 financial results to “higher-than-expected enrollment intake in all the Mapua campuses.”

Aside from education, iPeople’s portfolio also involves information technology. Its two main operating subsidiaries are Malayan Colleges, Inc. (MCI) and the Pan Pacific Computer Center (PPCC).

MCI also has two other wholly owned subsidiaries, the Malayan Colleges Laguna and the Malayan High School of Science. PPCC, on the other hand, provides the IT-related requirements of the Yuchengco Group of Companies, which include hardware, software and IT-related services.

Shares in iPeople added 14 centavos or 1.23% to close at P11.48 apiece on Tuesday. — Imee Charlee D. Delavin