31/03/2016 - 12:39

Navitas maintains earnings guidance

31/03/2016 - 12:39

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Education provider Navitas has reaffirmed its full-year $163 million earnings guidance after reporting flat overall student enrolment numbers for the first semester of the year.

Navitas chief executive Rod Jones. Photo: Attila Csaszar

Education provider Navitas has reaffirmed its full-year $163 million earnings guidance after reporting flat overall student enrolment numbers for the first semester of the year.

Navitas reported 19,247 enrolments across its university program division for the first semester, with enrolments at its Australian and New Zealand colleges falling 6 per cent compared with the previous corresponding period, while enrolments in North America grew by 18 per cent.

The Perth-based company attributed the fall in enrolments in Australia to the relocation of its Sydney Institute of Business Technology college to its Wynyard Green education precinct, and the closure of both a Macquarie University and a Curtin University campus in Sydney’s CBD, which were managed by Navitas.

However, chief executive Rod Jones said the reduction in enrolments at transitioning colleges, combined with growth in the wider Australian and New Zealand college network, was in line with the company’s expectations and so its FY16 earnings before interest, tax, depreciation and amortisation guidance remained unchanged.

“Although the regulatory environment continues to evolve in several key markets, global demand for high quality education remains strong,” Mr Jones said.

“With our commitment to student outcomes, established reputation and our diversified footprint, Navitas is well positioned for continued long-term growth.”

Navitas shares were 2.4 per cent higher to $5.09 each at 12:30pm.

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