Market Mover | IDP Education shares down 4% on regulatory policy changes and market outlook

A more restrictive policy environment in key destination countries (Australia, UK, and Canada) is reducing the international student market size, negatively impacting IELTS testing and student placement volumes during the second half of FY24.

The regulatory and market update highlight the following main points:

1. Market Size Forecast: IDP expects the international education market to decline by 20-25% over the next twelve months due to current policy settings and market trends. Also, a 15-20% increase in student placement volumes and a 15-20% decline in IELTS volumes are expected versus FY23.

2. Cost Reduction Program: In response to the challenging market, IDP is implementing a cost reduction program to align expenses with the near-term revenue outlook.

3. Long-term Outlook: IDP remains confident in the long-term growth drivers for the industry, despite short-term challenges. They are executing a strategy to create a unique offering for students seeking international education.

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Source: ASX