IDP Education shares slide as it expects student volumes to fall
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The news: IDP Education shares slid on the ASX after the education services company told investors that it expects a 20% to 25% decline in student volumes over the next year.
The numbers: IDP shares were down 4.5% to 66 cents by 1:20pm AEDT, making it the worst performing stock across the ASX 200.
The context: At its annual general meeting today, IDP's chief executive and managing director Tennealle O’Shannessy said that the company's 2024 financial year was "marked by government policy changes and increased uncertainty for students, test takers and institutions".
However, the Melbourne-based company — which offers student placements in Australia, New Zealand, the USA, UK, Ireland and Canada — noted that while industry volumes dropped an estimated 13% during the year, IDP saw 17% volume growth.
In August, IDP beat full-year profit forecasts, boosted by double-digit growth in its student placement business.
It also warned of a "dynamic" regulatory and market environment for international education, including "an assumed decline" in Australia in light of the federal government's proposed international student caps.
The source: ASX announcement
