Navitas strikes another university deal

Shares in Navitas were higher after the education service provider executed a 10-year deal with the University of Newcastle to establish the Newcastle International College.

The college will be based at the university's Callaghan campus, and offer pre-university and pathway programs for students seeking to gain admission to the university's programs.

Chief executive Rod Jones said the agreement consolidated Navitas' position as Australia's largest provider of university programs for international students.

"One in eight international higher education students that commence their studies in Australia currently commence at a Navitas college," he said.

"With the opening of Newcastle International College scheduled for semester 1, 2011, we look forward to another quality partnership to increase our offerings in Australia.

"The consolidation of our position in Australia, as well as new colleges in the US and UK, will in turn allow us to continue our global expansion.
Last month, the company executed three agreements with two US universities to establish colleges, while a fourth deal was underway.

Earlier this week, Mr Jones said each new college is estimated to cost around $1 million to $1.5 million to establish.

Mr Jones added that Navitas aimed to execute 10 college agreements over the next year across Australia, the US, Canada and the United Kingdom.

Navitas this week reported a record $27.5 million net profit for the six months to the end of December, a 45 per cent lift on the previous corresponding period.

The company is forecasting annual earnings before interest, tax, depreciation and amortisation of between $94 million and $97 million, depending on start up costs of investment in new colleges.

Shares in Navitas climbed 20 cents, or 4.3 per cent, to $4.85 at 11:40 AEDT.