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Australian educator Navitas sinks to 1-yr low on revenue fall

Published 31/01/2017, 11:25 am
© Reuters.  Australian educator Navitas sinks to 1-yr low on revenue fall
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SYDNEY, Jan 31 (Reuters) - Australia's biggest listed private education firm Navitas Ltd NVT.AX said on Tuesday foreign exchange movements and two college closures trimmed earnings and revenue for the half-year ended 31 December, sending its shares to a one-year low.

The firm with operations in Australia, Britain and the United States said earnings before interest, tax, depreciation and amortisation fell 8 percent to A$76.6 million ($58 million), compared with A$82.8 million previously.

That result was broadly in line with analysts' expectations but investors looked harshly at a 12 percent slide in revenues from Navtitas' main business unit, sending its shares sliding as much as 4 percent to A$4.53 in morning trade, as the broader S&P/ASX 200 index .AXJO fell 0.5 percent.

Navitas' main business is running English proficiency and pre-university courses for foreign students. Its international footprint makes it susceptible to changes in student visa regulations and currency volatility.

The firm attributed the revenue drop to "adverse FX translation movements in overseas businesses" and migration restrictions hitting student enrolments in Britain, as well as a fall in Australian enrolments because of two college closures.

"With continuing solid growth in the number of students travelling overseas to study and the impact of the closed colleges behind us, the fundamental opportunity for our core business remains very strong," Navitas' Chief Executive Rod Jones said in a statement.

Net profit rose 18.8 percent, mostly boosted by the partial sale of a college in Perth. Navitas announced an interim dividend of 9.4 cents, from 9.6 cents previously.

($1 = 1.3236 Australian dollars)

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