IDP Education (IEL) has seen its shares jump 26.7 per cent in early trading, despite announcing a 14 per cent decline in revenue to $888.2 million. This figure, however, surpassed consensus forecasts of $865 million, triggering a positive market response. IDP Education provides services to international students at institutions across Australia, the USA, the UK, Canada and New Zealand. They also distribute and administrate English language tests for students.
The revenue drop was attributed to a 29 per cent decrease in student placement volumes and an 18 per cent fall in English language testing volumes. In response to these challenges, IDP Education has initiated a multi-year transformation program. This program aims to achieve a $25 million cost reduction in the financial year 2026, signalling a strategic shift towards greater efficiency and streamlined operations.
Chief Executive Officer Tennealle O’Shannessy commented on the company’s performance, stating, “Our focus this year has been on managing our business in a dynamic operating environment.” She further emphasised the company’s financial stability, adding, “Our balance sheet and cash generation provide us with the capacity to navigate current market conditions and to make the required investments for the future.” The market has reacted positively to these announcements, with shares remaining up 23 per cent in early morning trade.
