International student recruitment giant IDP has announced a 16 per cent fall in revenue in the second half of 2024, driven by declining student placements in the wake of immigration policy changes in popular destinations.?
According to the Australian company’s half-year results, , total student placement volumes were down 27 per cent. All four of the top English-speaking destinations saw declines, most notably in Canada (-43 per cent), followed by Australia (-25 per cent), the UK (-24 per cent) and the USA (-18 per cent).?
IDP, which jointly owns the popular IELTS test, also reported that English language testing volumes were down by 24 per cent globally.?
This was?mainly driven by a 55 per cent drop in India, which the company attributed to declining student flows to Canada following immigration policy changes, the impact of the dependant visa rule changes in the UK and increased visa rejection rates in Australia.?
Collectively, these changes led to “negative test taker sentiment towards key destination markets”, the company said in its shareholder presentation.?
Overall, IDP’s revenue fell to AUD $475.4 million (?236 million), with total fees received for student placements down 27 per cent.?
It follows a difficult period for international student flows in general, following controversial student caps in Canada and attempts to introduce a similar policy in Australia. The fallout from changes to dependant visas and uncertainty about the graduate route also contributed to declining numbers of international students coming to the UK.?
IDP reported “early signs” that “policy certainty” in some key destinations was driving a shift in student preferences, with web traffic showing increased interest from prospective students in the UK and Australia.?
There were also some glimmers of growth during this shaky period. Student placement volumes increased 57 per cent in New Zealand and 28 per cent in Ireland. From a source country perspective, revenue from China grew?4 per cent, “largely due to increased placements to the UK”.
Outside India, the total number of students taking an IELTS test with IDP was up 2 per cent, with positive performance from “key growth markets” including Vietnam, Uzbekistan, Indonesia, Australia and Canada.?
The average fee IDP receives per student placed in a university also increased 14 per cent as a result of “higher tuition fees, client commission rate increases, product mix and higher value added services”.
Despite the fall in revenue, the company’s financial report said its position remains “strong”.?
