NextEd, which was known as iCollege until December 2022, has 11 colleges across 10 campuses in seven Australian cities and operates student recruitment under the Go Study brand.
According to the company’s interim financial report for H1 FY23, NextEd’s four-segment EBITDA was $6.6 million, a 403% year-over-year increase.
Operating cash flow of $14.4 million represented an increase of 876%, while the cash balance of $38.6 million as of December 31, 2022 was 28% higher than the prior half.
Deferred revenue as of December 31, 2022 was $40.3 million, up 31% from $30.7 million as of June 30, 2022.
The report states that NextEd “expects revenue and EBITDA to increase in 2H FY23 compared to the prior half as international student numbers continue to grow.”
“We achieved exceptional results in the first half of FY23 and are excited to take advantage of future growth opportunities by expanding our course offerings, increasing our school footprint and extending the lifetime value of students,” said NextEd CEO Glenn Elith.
“The NextEd team is energetic and dedicated to unlocking the potential of the organization and its students.”
While sales at International Vocational (+256%), Technology & Design (+144%) and staffing agency Go Study (+160%), Domestic Vocational fell 19% as NextEd discontinued unprofitable courses.
Brands in NextEd’s portfolio include: Academy of Information Technology; Capital Training Institute; Celtic training; Coder Academy; To go to study; Greenwich College; International School of Color and Design; online provider of Work Ready Education; and SERO Institute.
Although NextEd stopped delivering “not-for-profit” courses to domestic students in the first half of FY23, the company said domestic vocational education is likely to see future growth, particularly in hospitality and healthcare.
“NextEd is confident that student demand for its accredited vocational courses in hospitality and healthcare will remain strong and there will be future opportunities to increase this revenue due to available government funding and industry demand for quality graduates,” the report said.
Domestic rate cuts resulted in a 19% decline in domestic training revenue in H1 FY23 to $4.7m, but the company still achieved a 28% increase in EBITDA to $1.5m due to the back-office reorganization it implemented. to achieve efficiency and better support future growth”.
Through Go Study, it also recruits international students to study at over 350 education providers in Australia, Canada, the US, the UK and Europe. The agency has offices in Australia – Sydney, Melbourne, Brisbane, Gold Coast, Perth – Europe – Spain, France, Italy – and South America, Colombia and Chile.
The report states that the company’s commission income in the 2H to December 31, 2022 reached $1.9 million, up from $796,000 prior to December 31, 2021.
In the first half of 2023, NextEd confirmed 8,460 new students enrolled in English language and vocational courses, a 251% increase from 2,411 enrolled in 1H22.
As of December 31, 2022, there were 4,163 students actively studying English at the provider, an increase of 1,296% compared to the same period in 2021, when 299 students were enrolled. By the end of February 2023, the total number of English language students reached approximately 5,300.
Strong supply chain relationships, quality academic outcomes, available campus capacity and Australia’s “attractiveness and resilience as a study destination” will all lead to increased English language enrolments.
NextEd also predicts that English enrollments will move into other vocational programs the company offers.
The provider launched English and vocational courses at its Gold Coast campus in January 2023 and has added six hospitality vocational courses in Perth and Brisbane, with plans to launch in Melbourne, Sydney and the Gold Coast later this year.
Sydney and Melbourne also recorded four new bachelor degrees in February 2023.
The expansion at the Sydney, Melbourne, Brisbane and Gold Coast campuses will allow for an expected increase in international student numbers as the company projects “significant growth” in future international student intake.
Classrooms at the Melbourne campus will grow from 73 to 89 from May, classrooms at the Brisbane campus from 12 to 24 from April 2023, and a further 18 classrooms at the Sydney campus are expected to be re-let in early March.
“In addition to current growth drivers, there are other exciting opportunities for NextEd to invest in growth through further development of course offerings, geographic and addressable market expansion, and using our strong cash position and organizational capabilities to consider strategic mergers and acquisitions,” the report said. he remarked.