IDP’s revenue jumped to a “record” $1,307 million in the 12 months to June 30 2024 – representing a 6% growth year on year largely driven by a 27% jump in student revenue growth, the company revealed in financial statements published on August 29.
It said its strong student placement revenue was caused by “strong increases in both volume and price”, with an average year-on-year cost increase of 10%.
In key study destination markets, student placement volume grew 31% in Canada, 26% in the US, 17% in Australia and 3% in the UK.
The statements also showed the company saw “record” student placement volumes in the reporting period, growing an impressive 17%. IDP said this was down to “strong market share growth”.
Meanwhile, the company’s adjusted earnings before interest and tax (EBIT) of $239m was up 4%, and adjusted net profit after tax (NPAT) was down 1% to $154m. On an unadjusted basis, these metrics were down 5% and 10% respectively.
The strong financial performance comes after IDP Education revealed in early June that it would be making significant cuts in response to “restrictive policies” in major study markets such as Australia.
IDP’s chief executive officer and managing director, Tennealle O’Shannessy, said: “We are proud of the results our global team delivered in FY24, despite the international education sector’s well-documented regulatory challenges.”
“Our achievements highlight IDP’s focus on delivering quality services and commitment to our long-term strategy,” she added.
However, the picture wasn’t all rosy.
In a stark warning to the sector, IDP predicted that in financial year 2025 that international student volumes in its six key destination markets will decline between 20% and 25% year-on-year.
“Incorporated within that outlook is an assumed decline for Australia which aligns with recent trends and with the overarching targets incorporated within the government’s documented net overseas migration objectives,” the report said.
“From an IDP perspective, given the outlook for the overall market, we expect to record a decline in volumes in our key business lines in [financial year 2025] but would expect to continue to outperform the broader market decline outlined above.”
We are proud of the results our global team delivered in FY24, despite the international education sector’s well-documented regulatory challenges
Tennealle O’Shannessy
In the report, IDP revealed its English language testing (IELTS) volume was down to 1,584,10 during this period, representing a year-on-year drop of 18%.
It attributed this to “uncertainty in key destination market policy settings”. In the past year, both Canada and Australia have announced a cap on international students.
Meanwhile, the future of the sector in the UK – a fellow ‘big four’ study destination – seemed uncertain before the government ultimately revealed it had decided not to scrap the Graduate Route in May.
But the report said: “IELTS volumes were down 18% primarily due to declines in India, a market impacted by negative test-taker sentiment towards regulatory and visa uncertainty in key destinations.
“Outside of India, IELTS volumes were up 12% with strong performance from Vietnam, Pakistan and Bangladesh alongside solid growth in IDP’s onshore markets, Australia and Canada.”
In a further shock to the UK’s English language testing market this week, The PIE News yesterday (September 2) revealed that the government is considering a complete overhaul of secure English language testing (SELT) – planning to move towards a dedicated test owned by the Home Office and designed by one supplier.
