IDP education shares drop 13% as international student volumes shrink
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The news: IDP Education was the worst performing ASX 200 company in morning trade after the education services provider reported a 39% fall in first-half net profit to $59.7 million, with immigration and visa policy changes in its key markets leading to lower numbers of international students.
The numbers: IDP shares were down 12.9% to $10.27 at 11:50am AEDT, extending losses of more than 45% over the last 12 months.
First-half revenue fell 16% year on year to $475 million, driven by a decline in student placement and English language testing volumes.
Student placement volumes tumbled 27% to 42,016, while English language testing volumes dropped 24% to 683,708.
The context: IDP's chief executive Tennealle O'Shannessy noted that governments in key destination markets introduced further policy restrictions aimed at reducing migration levels during the half-year period.
IDP, which offers student placements in Australia, New Zealand, the USA, UK, Ireland and Canada, said it expects the size of the international education to contract as a result.
On current trends, the company said, the total number of new international students commencing study in IDP's six key markets is expected to decline by 20% to 30% in FY25 compared to FY24.
The source: ASX
