Navitas records 12 per cent revenue growth

29 July, 2015

Multi-sector international education provider Navitas recorded 12 per cent growth in group revenue and a 13 per cent increase in underlying EBITDA in the 2015 financial year, according to results released this week, with agent partnerships cited as a contributing factor.

Navitas has unveiled its financial year 2015 results

Group revenue rose from AUS$878.2 million in FY14 to AUS$980.3 million in the last year, despite static enrolments in the University Programs Division. Underlying EBITDA (earnings before interest, taxes, depreciation, and amortization), meanwhile, jumped 13 per cent to AUS$163.1 million.

“In FY15 Navitas celebrated 20 years of delivering high-quality education outcomes to students and partners,” said Rod Jones, CEO of Navitas Group.

Jones cited increasing agent partnerships as among the group’s recent successes. “A number of key achievements were: continued high progression rates in the University Programs Division; improved net promoter scores in the Professional and English Programs and SAE Divisions, an expansion of our global agent network and an increase of 15 per cent in the royalties paid to our university partners,” he said.

In the University Programs Division, revenue increased by 13 per cent despite enrolments slightly declining. Navitas said the non-renewal of contracts with the Sydney Institute of Business and Technology and Macquarie University was one of the factors leading to a two per cent decrease in Australia.

Declining onshore enrolments and increased immigration scrutiny in higher-risk markets such as Nepal, India and Vietnam also contributed to the fall, Navitas said. As previously reported, UK enrolments have declined, but have been counterbalanced by strong growth in North America.

“Australia and UK colleges face a number of challenges which are impacting enrolment growth in the short term. Navitas is working with university partners, the agent network and government to mitigate these issues,” said Navitas in the statement.

In the last twelve months, Navitas has announced new pathway agreements with Florida Atlantic University, USA, and the UK-based University of Northampton, as well as joint venture models with the University of Western Sydney, and the University of Canberra in Australia.  

The SAE Group, offering creative media programmes worldwide, recorded 23 per cent revenue growth in FY2015, while Professional and English Programs remained steady.

Looking ahead, Navitas said it expected FY2016 EBITDA to be broadly in line with the 2015 results.

“As the global education sector undergoes significant change driven by regulatory, technological and competitive forces, we are also evolving our strategy by building on our leadership position and diversified portfolio and our global capacity to achieve growth in the long term,” said Jones.

At the time of writing, AUS$1 = US$0.73

Matthew Knott
News Editor



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