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Total revenues increased by $37 million,or 10.1 percent, from last year to $405 million. Total revenues have grown at a compound annual growth rate of 7.2 percent for the past five years.
MBA Program Revenues
MBA Program revenues grew by $4 million,or 5.5 percent, to $77 million due to normal increases in tuition and fees, and increased enrollment in prematriculation programs and new activity in Immersion programs.
Executive Education and HBS Publishing Revenues
Revenues from Executive Education and HBS Publishing (HBSP) increased by a combined $19 million, or 9.5 percent, to $219 million. Executive Education saw strong returns on a recent investment in corporate relations and marketing, and successfully transitioned part of its Comprehensive Leadership Programs portfolio to new modular programs. HBSP completed a reorganization from a product-oriented organization to a market-oriented organization. HBSP revenue growth was led by $4 million of increased press activity and strong performance across all products and customer segments.
Endowment income distributed for operations rose by $7 million, or 9.9 percent, the result of higher-than-usual increases in the endowment payout related to superior performance by the Harvard Management Company. The increased distribution was used primarily to fund financial aid awards and faculty research.
Operating expenses increased by $30 million, or 8.7 percent, to $375 million, largely reflecting an increase in variable costs due to increased activity in Executive Education and HBSP, as well as a 15.8 percent increase in total fellowship support.
Cash from Operations
Cash from operations increased by $7 million to $30 million. Gifts from prior years, available to be spent pursuant to the donors' specifications, added $14 million to the School's cash flow, level with the prior year. Cash before capital activities thus increased by $7 million, from $37 million to $44 million.
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