Navitas extends UMass Boston partnership

18, February, 2015

Navitas has announced a renewal of its pathway agreement with the University of Massachusetts Boston (UMass Boston) in the USA, a deal which follows the publication of FY15 interim results showing a 14 per cent jump in revenue for the Australia-based global provider.

The Navitas at UMass Boston website homepage

The UMass Boston partnership has been renewed under materially similar terms and conditions but for a period of ten years, following the completion of the initial five-year arrangement. Navitas at UMass Boston offers pathway programmes in a range of disciplines, providing progression onto the second year of degrees at the university.

“We are very excited to extend our very strong and successful relationship with UMass Boston,” said Navitas Group CEO, Rod Jones. “UMass Boston has a rich history and is an innovative and enterprising educational institution which we are proud to partner with.”

UMass Boston Provost, Winston Langley, said, “The University of Massachusetts Boston is also pleased with the renewal of the partnership agreement with Navitas and we see it driving the next stage of the internationalisation strategy of the university.”

Navitas is currently negotiating similar renewal agreements with the University of Massachusetts Lowell (UMass Lowell) and the University of Massachusetts Dartmouth (UMass Dartmouth).

Meanwhile, Navitas recently announced a 14 per cent increase in total group revenue to AUS$480.5 million for the six months to December 2014, with student enrolment increases reported across all divisions.

Underlying EBITDA (earnings before interest, taxes, depreciation and amortisation) grew by 13 per cent to AUS$71.1 million, while net profit after tax rose by 12 per cent to AUS$40.4 million, compared with the same period in 2013.

“This has been a period of solid growth revenue across all divisions and margin improvement for University Programs and Professional and English Programs,” said Jones.

“Navitas also continued to invest in growth opportunities and productivity improvements including an increase in sales staff in source countries, US expansion of university programmes and SAE, enhanced staff capability and improved systems and processes such as shared services,” he said.

The company’s University Programs revenue increased by 14 per cent to AUS$277.5 million, and the Professional and English Programs division increased revenue by five per cent to AUS$114 million and earnings by 19 per cent to AUS$13 million.  

Navitas offers university pathway programmes in Australia, New Zealand, Singapore, USA and the UK. Sixty-five per cent of Navitas’ revenue came from its Australia-based operations, and as reported earlier this week, the Elicos, higher education and non-award (foundation) sectors all had record levels of commencements in 2014, according to recently released government data.

At the time of writing, AUS$1 = US$0.78

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