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UPDATE 1-Australia's Navitas HY profit falls hurt by U.S. immigration policy

Published 05/02/2019, 10:00 am
Updated 05/02/2019, 10:10 am
© Reuters.  UPDATE 1-Australia's Navitas HY profit falls hurt by U.S. immigration policy
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Feb 5 (Reuters) - Australian adult education provider Navitas Ltd NVT.AX posted a 14 percent fall in its first half net profit, weighed down by reduced enrollments in the United States due to tighter immigration policies.

The company said its net profit was A$21.4 million ($15.46 million) for the six-months ended Dec. 31, compared with A$24.7 million a year ago.

The Perth-based company, which provides English proficiency courses in Australia, North America and Britain, reiterated its forecast for a "medium-term" downturn in U.S. enrollments as hardline migration policies curbed foreign student admissions.

Navitas is vulnerable to policies in the United States, which is the world's largest education market and the company's third largest revenue source.

Revenue for the first-half of fiscal 2019 was up 5 pct to A$477.4 million, the company said in a statement.

The struggling company said in mid-January, that it would back a sweetened buyout offer worth A$2.09 billion from its founder Rod Jones and private equity firm BGH, after rejecting two bids from the consortium last year. are working hard to mitigate risks of disruption to students, staff and partners as we work towards a binding agreement to confirm and implement the BGH proposal," Chief Executive Officer David Buckingham said in a statement.

The company said it was not declaring an interim dividend in lieu of the deal.

Navitas' shares fell 7.2 percent last year.

($1 = 1.3845 Australian dollars)

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