IDP Education (IEL) H1 2025 earnings summary

Executive summary

• Revenue for H1 FY25 was AUD 475.4 million, down 16–18% year-over-year, driven by lower Student Placement and English Language Testing volumes, partially offset by price increases.

• Adjusted EBIT fell 40–42% to AUD 92.7 million, and adjusted NPAT dropped 43–46% to AUD 58.3 million, reflecting volume declines and cost reductions.

• Market share in Student Placement increased, with a 15% volume decline outperforming the market's 28% drop.

• Disciplined cost management led to a 14% reduction in overheads and a 9% decrease in direct costs.

• Gross operating cash flow conversion improved to 64%, supported by better collections and revenue mix.

Financial highlights

• Revenue: AUD 475.4 million, down 16–18% year-over-year; Student Placement revenue down 14–17% on 27% lower volumes, offset by a 14% increase in average price.

• English Language Testing revenue down 19–22% (volumes down 24%, mainly due to India, offset by price increases); English Language Teaching revenue up 4–5%.

• Overhead costs down 14% to AUD 167.8 million; direct costs down 9%.

• Adjusted EBIT of AUD 92.7 million, down 40–42%; adjusted NPAT of AUD 58.3 million, down 43–46%.

• Interim dividend declared at 9.0 cents per share.

Outlook and guidance

• Market expected to decline 20–30% in FY25, with the company aiming to outperform the broader market.

• Early signs of stabilization and potential growth in the U.K. for the Fall intake; Australia shows a small uptick in sentiment post-policy changes.

• Overhead costs in H2 FY25 expected to be in line with the previous year, assuming no major market changes.

• Price environment remains supportive, with average price increases expected to continue.

• Ongoing focus on cost discipline and targeted investment to drive long-term value.