|Forum - QualityStocks
|From: madrid (Rep: 0) reply to madrid||Date: 08/22/2017 10:03|
|Forum: QualityStocks - Msg #10842||Thread #673939492 (Rec: 0) |
|Re: Idp Education. ROE 50% and Growth. Strong Results|
| Reply to madrid - Msg #10825 - 07/31/2017 15:40|
Re: Idp Education. ROE 50% and Growth
Canada the big beneficiary as students turn away from Trump
IDP Education’s recruitment for US colleges and universities fell 29 per cent in the second half of 2017, after rising by the same margin last financial year.
Meanwhile placements in Canada more than doubled, with volumes rising 105 per cent compared to a 59 per cent increase in 2015-16.
The figures add to indications that students are deserting Donald Trump’s US — with other English-speaking countries including Australia the likely beneficiaries — and highlight the profits and pitfalls of international education.
IDP chief executive Andrew Barkla said policy developments in the US, particularly the tightening of visas for Indians, had affected students’ appetite to study there.
“If they can’t get into the US, an obvious next choice is Canada,” Mr Barkla said.
He said the trend illustrated the benefits of IDP’s move years ago to recruit students for multiple destinations rather than focusing on Australia.
“We can give them options, and help them regardless of what sociopolitical challenge one market might be facing. It’s giving us a chance to participate in the global market place, which de-risks the business in many respects.”
IDP’s results for the first half of this financial year, released yesterday, show student placements are an increasing contributor to the bottom line as the company diversifies from its staple activity of English language testing.
Placements contributed 28 per cent of the company’s $189.8m in revenue in the first half of 2016-17, compared with 26 per cent last financial year and 22 per cent the year before. Total net profit rose 3.8 per cent to $24.1m.
Revenue growth from IDP’s flagship IELTS English language tests languished at 2 per cent in the first half of 2016-17, compared with 11 per cent for student placements. However, Mr Barkla said these figures were not a true reflection of the growth, which was masked by currency fluctuations.
IDP is exposed to movements in the pound because it pays a quarterly fee to Cambridge English Language Assessment, co-owner of IELTS, in sterling.
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