IDP Education’s share price plummeted 48% today after a disappointing update from the testing and student placement firm. Shares are down 66% for the year, so far. They are currently trading at $3.88, which is the lowest they’ve been since December of 2016
According to the update, in FY2025 student placement volumes are expected to decrease 28 to 30 percent compared to FY2024. Testing volumes (IELTS) are expected to decrease 18 to 20 percent.
The update notes that IDP “has a focused roadmap of digital and AI enabled product development across Student Placement and Language Testing that will underpin long-term volume and revenue growth, margin expansion and shareholder returns.”
On a call with investors, a few noteworthy topics were raised.
Regarding China, IDP notes: “We continue to progress our entry of IDP IELTS into China, are confident in the long term business case, continue to work constructively with the Chinese government and will update the market as appropriate as we continue to work towards our full IELTS opening in China.”
When pushed for a date when testing might begin, IDP didn’t provide one. They noted that the government there has taken an “encouraging view” of IDP’s entry into the country, but that the regulatory process has “slowed.”
Regarding bright spots for IELTS, on-shore testing in Canada was identified (due to testing for PR) as well as increased domestic usage in Asia (probably Vietnam, though it was not specifically named).
Regarding the HOELT test, it was indicated that the IELTS partners will apply for the tender as a partnership (rather than, say, individually). It was also confirmed that the HOELT will only be for work and migration visas (not student visas). The current concession, though, has been extended for another 12 months.