IDP Education released its 2024 Financial Year results today, and for the first time, student placement revenue has replaced English language testing revenue as its main source of income. Total revenue was up six per cent on last year’s result, to $1.037m, driven by 27 per cent growth in student placement revenue.
However, English language testing (IELTS) volumes were down 18 per cent, leading to an 11 per cent decline in revenue. IDP attributed the decline in English language testing volumes to uncertainty in key destination market policy settings.
Other key results included:
- 17 per cent total volume growth in student placement, which IDP reports compares to a 13 per cent volume decline in the broader industry
- On a destination country basis, student placement volume grew by 31 per cent to Canada, 26 per cent to the US, 17 per cent to Australia, and 3 per cent to the UK
- English language teaching volumes up 13 per cent
- 21 per cent growth in revenue from Other Student Placement services, which includes digital marketing, events, data services and consultancy
IDP’s global outlook for 2025 predicts a decline of 20-25 per cent in international student volumes in FY25, compared to FY24. The outlook includes an ‘assumed decline for Australia’ due to the Government’s current action to achieve net overseas migration objectives.
Despite this, Tennealle O’Shannessy, IDP’s Chief Executive Officer and Managing Director said, “although current market conditions may be challenging, our genuine commitment to transforming lives through international education underpins all aspects of our operations and will guide us through this current period”.
Three key areas of focus for IDP in the near term are detailed in the ASX announcement:
- Market share increases in student placement.
- Product innovation, with investment in strategic growth areas.
- Cost management. As reported by Koala in June, IDP reported a cost reduction strategy in its H2 FY24 update, which included a job losses in the global workforce of about six per cent. This area of focus shifts to cost management.
