IDP Education Limited (IDP) announced its results for the first half of the 2024 financial year this week, with one of the highlights being a record revenue of $579 million. This result is up 15 per cent on the same period in 2023, driven by student placement revenue growth of 44 per cent.
Record student placement volumes of 57,300 (up 33 per cent) and price increases (eg commissions on increased course fees) contributed to the revenue growth.
The one negative in the IDP results was a decline in English Language Testing (IELTS) of 5 per cent in comparison to H1, 2023, amounting to a revenue decline of $15.1m.
IDP attributes this to a 12 per cent decline in IELTS testing in India, due to “weaker industry conditions, increased competition and lower repeat testing rates in Canada”. India has been impacted by changes in the bilateral relationship between Canada and India, as well as a changed visa regime in the UK and increase in visa rejection rates in Australia.
The decline of IELTS in India was offset by a growth of 17 per cent in other markets, with a global testing network across 87 countries, including an expansion of the IELTS testing network in Africa during this period.
English language teaching was also a good news story for IDP, with 25 per cent growth (an increase of $3.9m), and a volume of 51,600 courses.
Other key financial results include:
- Adjusted earnings before interest and tax (EBIT): $159m, up 25 per cent
- Adjusted net profit after tax (NPAT): $107m, up 23 per cent
Student placement volumes were up in the following markets (noting there was no mention of results in New Zealand or Ireland): Australia, 33 per cent; Canada, 56 per cent; UK, 19 per cent; USA, 30 per cent.
IDP also reports achievements against its strategic priorities, including:
- Opening 11 new student placement offices in strategic high-growth markets
- Completing the integration of acquisition, Intake Education, across seven countries
- Adding 11 new universities and colleges to its US client portfolio
- Completing the roll-out of the new IELTS testing platform
IDP provides international student placement services and is listed on the Australian securities exchange (ASX:IEL). It has 6800 employees across more than 30 countries, and partners with more than 900 universities and institutions in Australia, Canada, Ireland, New Zealand, the UK and the US. IDP co-owns English language test, IELTS.
