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Bridgepoint Education, Inc. (BPI) Message Board

  • docteurnot docteurnot Dec 7, 2012 5:34 PM Flag

    Interesting developments…..

    Ashford’s web site posted a catalog supplement on 11/30/2012 which details several changes which could severely affect cash flow and earnings.

    The $1,290 upfront “technology services fee” charged to all new students has been replaced with a $50 per course technology fee effective 1/1/2013. The loss of the service fee amounts to over $100 million per annum. This would be partially offset by the $50 per course fee which will only approximate $35-40 million per year in revenues.

    Another example of how the business model continues to be adversely impacted by lower enrollment and higher costs.

    Sentiment: Strong Sell

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    • I think you are right - if you read transcript from the earnings call BPI seems to be dodging quantifying the impact of this - as well as the financial impact of hiring more full time faculty.

      I think this is the first of many changes they are going to have to make to have any chance of maintaining accreditation. Undoubtedly more developments to follow.

 
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