Global education provider Navitas Ltd (ASX:NVT), has renewed a University Programs agreement with Edith Cowan University for Navitas’ Sri Lankan college.
Navitas, with a market cap of $1.98 billion, delivers educational services to over 80,000 students in 31 countries.
The renewed agreement with Edith Cowan University extends the contract for Navitas’ Sri Lankan college ACBT until January 2021, offering Sri Lankan students an Australian university qualification in Sri Lanka.
Navitas has also signed a six month extension of its agreement with Edith Cowan University for its PIBT college in Sri Lanka to allow the parties to conclude negotiations on a longer term renewal.
Navitas recorded an 8% growth in group revenues to $517.5 million for 1H FY16, compared to 1H FY15.
More importantly, reported net profit after tax increased 44% to $45.5 million in 1H FY16, from $31.5 million in 1H FY15.
The potential for the education sector is bright, with student growth driven by developing markets such as Asia, Africa and Latin America.
By 2020, 50% of the global workforce will be millennials and more than 50% will live in emerging markets.
The share price of Navitas has increased by about 13% during the last 3 months and 32% higher since November 2015.