IDP Education Limited

ٱلسَّلَامُ عَلَيْكُمْ 
IDP Education is a global leader in education services, with operations across 57 countries, and it attracts approximately 100 million website visits annually. The company operates primarily in four key segments, which collectively form the foundation of its business model:

1. Student Recruitment and Placement:IDP Education assists international students in securing places at universities and colleges, predominantly in English-speaking countries such as the U.S., U.K., Canada, Australia, and New Zealand. The company acts as an intermediary, connecting students with educational institutions and providing guidance throughout the application and admission processes.

2. English Language Testing:
IDP Education is a significant player in English language testing, particularly through its ownership and operation of the IELTS (International English Language Testing System). The company provides testing services for students who need to demonstrate their English proficiency for academic or immigration purposes. This segment is crucial as it generates significant revenue, with a global presence in many countries.
3. English Language Education:
In addition to testing, IDP Education offers English language learning programs. These programs are designed to help non-native English speakers improve their language skills before attending educational institutions. This also includes resources to aid students in their academic and professional development.
4. Student Essentials Services:
IDP provides a variety of essential services to students who are studying abroad. These include assistance with obtaining education loans, transferring money, securing student health insurance, arranging accommodation, providing SIM cards, and other essential needs to help students navigate life in a foreign country.

Given its diversified business model, IDP Education is well-positioned to capture multiple revenue streams from international students, from recruitment to testing to education and student services. However, as seen from recent results, the company faces challenges such as regulatory changes, geopolitical factors, and shifting market dynamics, which can impact student enrollment and test volumes. Understanding these operational segments is crucial for assessing the overall financial health and future growth prospects of IDP Education, particularly as global trends in education and international mobility continue to evolve.

2025/03/18

(IEL) - market update

A new policy has been introduced that bans people from 43 countries from entering the U.S., which could lead to fewer international students getting U.S. student visas. This is a big deal because many U.S. universities rely on international students for both their enrollment numbers and tuition fees. With fewer international students coming in, it could make things even harder for schools that are already facing challenges like rising costs, changing student preferences, and economic pressure.

The slowdown in international student intake will likely hit schools that depend heavily on students from abroad, reducing their income. For companies like IDP Education, which helps students apply to study in other countries, this could mean more competition and changes in demand for their services in areas not affected by the ban.
IDP’s recent financial results show a 40% drop in profits, which is a sign of how tough the current market is. This decline suggests that businesses connected to the education sector might continue to struggle, especially those relying on international students.
The travel ban and the financial struggles of companies like IDP show that the education sector is facing big risks. It’s important for investors to keep these factors in mind when making decisions related to education investments or businesses linked to international student enrollment.

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IDP Education Limited

2025/03/18

(IEL) - market update