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Navitas interim profit slumps 53.6pc

Trevor Chappell  |  30 Jan 2018Text size  Decrease  Increase  |  
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MELBOURNE - [AAP] Education provider Navitas's (ASX: NVT) first-half profit has slumped by more than 50 per cent, hit by the previously announced closure of some colleges and a decline in government-backed language training contracts.

Navitas's net profit for the six months to December 31 fell by 53.6 per cent to $24.7 million.

But the group says revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) for the half-year from continuing operations have risen, partly on the back of higher student enrolments in the group's university partnerships division.

Navitas chief executive Rod Jones says the group delivered strong academic outcomes for students while delivering growth and improved cash flows from continuing operations.

"Global demand for education and training continues to increase steadily, providing Navitas with growth opportunities in traditional and emerging fields," Mr Jones said in a statement on Tuesday.

He said strong cash flows had enabled Navitas to maintain its fully franked interim dividend of 9.4 cents per share but the group anticipates a move to a partially franked dividend sometime in the near future.

Navitas said University Partnerships enrolments generated underlying growth in enrolments of eight per cent in the first half.

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The University Partnerships division delivers pre-university education programs via pathway colleges and managed campuses to students seeking to attend university.

Navitas said enrolment growth in its SAE operations, previously called the School of Audio Engineering and which deliver education programs in creative media, was solid in Australia.

Navitas shares were 32.5 cents, or 6.2 per cent, lower at $4.915 at 1148 AEDT.

NAVITAS PROFIT DOWN

* Half-year profit down 53.6pct to $24.7m

* Revenue down 4.6 per cent to $456.7m

* Interim dividend of 9.4cps, fully franked, in line with a year ago

 

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© 2021 Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

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