Navitas records enrolment and profit growth

August 01, 2013

Global education provider Navitas returned to profit in financial year 2013 fuelled by student enrolment growth, according to financial results published by the Australian-based company.

Total revenue for the group rose by six per cent to AUS$731.7 million (US$656.1 million), while net profit after tax rose two per cent to AUS$74.6 million (US$66.9 million). The results represent a return to growth following declines in FY2012, which Navitas described as the toughest in its history.

The improved financial results were driven by an increase in student enrolments, most notably a 33 per cent rise in new international student enrolments at its colleges in Australia as well as a 20 per cent jump in domestic enrolments. Overall full-time student numbers across Navitas’s global university courses rose five per cent to 14,744, with growth in all regions. The University Programs Division increased revenue by nine per cent.

Navitas CEO Rod Jones said, “Following several challenging years in key markets we did see general improvement in FY13, especially in Australia where the introduction of streamlined visa processing and post-study work rights has created stronger interest from international students.”

He added, “Although most offshore markets performed well, the key Australian market has only just returned to total enrolment growth which means the full financial benefits were not realised in the FY13 period.”

In the results, Navitas noted a first university programs college in New Zealand and merger of the Professional and English Divisions as being among the operational highlights of the year.

Jones predicted further growth in the next financial year. “With University Programs enrolment growth, an expected return on recent investment from SAE [Institute] and continued strong Professional and English Programs performance, we anticipate solid growth in FY14 with even more opportunities in coming years.”

In other news, Jones said that a sudden strong recovery in demand from India and Pakistan had caught Australia’s Department of Immigration and Citizenship (DIAC) by surprise, with a lack of approved doctors to provide requisite medical checks leading to delays. Jones said 200 Navitas students have had to delay enrolment until the following semester.

“They [DIAC] are aware of the situation and we hope they are going to deal with it,” said Jones.

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