Malta sees revenue increasing

July 19, 2013

Malta’s ELT industry saw increased revenue per student week in 2012 as well as a rise in student numbers, according to financial analysis recently released by language school association Feltom.

As previously reported, Malta received 81,911 students in 2012, its highest number since 2008, with an increase in student weeks and average length of stay also registered.

The 2012 APS Bank, Feltom ELT industry survey report by Deloitte now also reveals that operating profit per student week also increased by 49.6 per cent to €46, up from €30 in 2011. Total sector gross operating profit for the year rose by some 85.8 per cent to €10.3 million.

Total revenue per student week increased by 3.8 per cent to €293.9 compared with €283 in the previous year. Part of the increased profitability is explained by a reduction in costs, with overhead costs (including administration, utilities, marketing and rent) per student week falling 10.9 per cent and payroll costs per student week reducing six per cent.

The total revenue generated by ELT schools stood at €66.5 million, a substantial increase over €51.6 in 2011. Within this figure, tuition revenue stood at €34.2 million, accommodation revenue at €26 million, and activities and other revenue were worth €6.2 million. According to Feltom, the total expenditure by ELT students in 2012 was over $135 million.

With the increase in student numbers, agency commissions predictably increased, worth a total of €9.6 million, compared with €6.6 in 2011. Commissions accounted for 27 per cent of direct costs for schools, with accommodation costs at 52 per cent and transport costs at 21 per cent. Commissions were worth €42.4 per student week.

“This healthy performance proves that Malta is continuing to cement its position as a centre of excellence for English language learning,” said Feltom Chairman, Julian Cassar Torregiani, in his foreword to the report. He added, “Our business is growing and spreading, but so is our competition, which means we cannot and should not rest on our laurels. There cannot be any weak links in our industry chain.”

Malta’s ELT industry will be hoping that it can build on these gains in 2013, but will be mindful that the two consecutive years of growth have not been posted in the last five years.

At the time of writing, €1 = $1.31

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