The AUS$97.4m net profit after tax is up from the $82.1m earnings in H1 FY23.

If growth continues at a similar rate for the rest of the financial year, the company will surpass total revenue of $1 billion. In the 2023 financial year it reached a record $928m in total revenue.

The financial performance was bolstered by a 44% revenue from student placement compared to the same period in 2023, as well as growth in English language teaching in Cambodia and Taiwan.

IDP recorded $287.5m in student placement revenue, generated from advising and placing students with education institutions, in addition to income from marketing and student recruitment services provided to educational institutions.

Revenue from placing students in destinations other than Australia rose by 51% (+$54.9m on H1 FY23) to reach $163.3m in the six months. Australian placements rose by 43% (+$27.9) to account for $92.3m.

Canada revenue grew by 66%, UK by 40% and the US by 63%.

Regarding source countries, India revenue grew by 38% while China increased by 60% on the H1 FY23, when the country’s borders remained closed.

Excluding India and China, the rest of Asia – including countries such as Bangladesh, Cambodia, Indonesia, Malaysia and the Philippines among others – grew by 49%.

“During H1 FY24 placements recorded revenue of $255.6m with both volumes and average price contributing to the 48% growth in revenue vs the same period in FY23,” the interim report stated.

Additional placement services include digital marketing, events, data services consultancy and peer to peer software.

Revenue from the “other” placement services grew by $5.4 (+20%) to reach $31.9m.

“Placements recorded revenue of $255.6m with both volumes and average price contributing to the 48% growth”

IDP’s recent acquisition of The Access Platform helped to contribute 22% of the growth of other student placement services. Student placement events revenue grew 39% and Digital Marketing revenue rose 6%.

The overall gross profit margin increased to 64.6% from 62% in H1 FY23, with student placement income providing higher margins than other business lines.

Additionally, English Language Teaching revenue grew 25% on the first half of the previous financial year.

IDP’s acquisition of Intake – formerly known as UKEAS – in 2022 brought with it two additional campuses to the IDP portfolio. This helped English school growth in Taiwan reach 18% against H1 FY23.

Cambodia also grew strongly at 27%, but Vietnam English language teaching declined by 16%.

Testing struggles

Revenue from English language testing has also continued to decline in India.

In the full 2023 financial year, revenue from IDP’s English language test division IELTS fell by by 5% in India, which the company said was largely down to a drop in demand for studying in Canada.

With recent policy announcements in Canada, it is likely the demand from India will fall further.

In H1 FY24, revenue has fallen an additional 5% against the same period in FY23 to $270.3m, with declines in Canadian demand once again highlighted in the report.

Overall IELTS revenue from India – acquired in 2021, to the dismay of some in the Indian market –declined by 29% “due both to a reduction in market size and increased competition”.  However, IELTS revenue outside of India grew by 21%.

Testing volumes declined by 12% with an average price increase of 7% vs the same period in FY23, the report noted.

Overall revenue for H1 FY24 rose by 15% on last year’s first half results reaching $579.1m. Earnings before interest and taxes (minus corporate costs) saw 21% growth to hit $145.3m.

All regions performed well, the report stated, with revenue growth of 13% in Asia and 25% in Rest of World providing the majority of growth.

“Pakistan delivered good growth in both IELTS and Student Placement”

All regional segments benefited from the growth in student placement across most source markets.

EBIT in Asia increased by 18% in the first half of the financial year, with “strong contributions” from India and China.

Similar student placement success in Nigeria and Ghana saw Rest of World EBIT rise by 14%, while “Pakistan delivered good growth in both IELTS and Student Placement”.

In Australasia, which includes Australia, Fiji, New Zealand and New Caledonia, EBIT grew by 96%, led by onshore student placement in Australia and IELTS direct testing delivering “strong volume and revenue growth”.

IDP expanded its footprint with 11 new student placement offices in the six months, while the company made additional investments in IELTS marketing “to defend our market position in India and Canada”.

In the 2022 financial year, IDP recorded $793m in revenue.