Global education services provider Navitas Ltd (ASX: NVT) made an announcement on 5 December 2018 informing that it has witnessed a growth of 3 percent in enrolments across the University Partnerships Division for the third semester of FY18.
Navitas reported that the equivalent full-time student units (EFTSU) for the 3rd semester increased by 5 percent to 17,013 as compared to the prior corresponding period. Due to the growth in 3rd semester, the total growth in student enrolments across the first two semesters of FY 2019 is 5.4 percent.
As per Navitas Group Chief Executive Officer Mr. David Buckingham, the enrolment growth in the 3rd semester shows the value of its diversified portfolio across study destinations. Further, the growth also demonstrates the strong contribution from the main intake to Navitas’ partner universities in the northern hemisphere.
Navitas reported that the enrolments in the UK increased by 16 percent in the 3rd semester of 2018 as compared the 3rd semester of 2017. Navitas experienced strong growth in UK enrolment despite facing continued tough student recruitment environment and immigration uncertainty in the UK. As per the Navitas announcement, the strong growth in student enrolments was mainly due to the growth in EU students and newly launched domestic enrolments. Further, Navitas also witnessed international growth in UK through South East Asia and the Middle East and African markets.
Navitas reported that enrolments in North America grew by percent in 3rd semester. The Canadian colleges of Navitas performed well, and the demand for US partnership colleges remained strong in the 3rd semester with applications received higher than the prior corresponding period. The growth in US enrolments is getting very much affected by the high visa rejection rates and uncertain immigration policies.
Despite facing the difficult market conditions in the US, Navitas remain committed to supporting its US partners. Navitas is investing for growth in student enrolments by establishing new channels to market, and more effective targeting in source countries through its recently restructured sales and marketing function.
Enrolments at Australian and New Zealand colleges increased by 2% in the 3rd semester as compared to the previous corresponding period. Colleges in New South Wales (NSW) witnessed strong growth in the semester, however, the growth was partially offset by the growth rates of colleges in South Australia and Western Australia. Navitas has signed two new partner agreements, and it is expecting to sign six more in FY 2019. By signing new partners agreement, Navitas is trying to position itself for future continued enrolment growth.
Recently Navitas also announced that it has renewed its agreement with the University of Canterbury for the conduct of pathway programs at UC International College in Christchurch, New Zealand until 10 December 2023.
With the news, the share price of Navitas increased by 1.957 percent as on 5 December 2018. NVT’s shares traded at $5.210 with a market capitalization of circa $1.83 billion as on 5 December 2018 (AEST 4:00 PM).