- Record full year revenue and earnings with growth in each of the company’s core product categories
- Strong performance from Student Placement with the highlight being a 127% increase in placement volumes to Canada and a 26% increase in volumes to the UK
- Revenue from IDP Education’s Australian Student Placement business up 14% driven by solid growth in both volumes and average fees
- English Language Testing performed well with revenue from IDP Education’s global IELTS operations up 6% on FY16
- Acquisition of Hotcourses which significantly enhanced IDP Education’s digital reach and capability
- Introduction of new value added services for students studying in Australia
- Strong cash generation which resulted in a balance sheet with $2.4m of net cash as at 30 June 2017
Sigue la expansión, Japón
A future study destination
Posted on 2 August 2017 - 09:35am
Yee Jie Min
Students want the opportunity to work in another country and come back with that added experience, Jayanthi said — Shahrill Basri/TheSun
Students want the opportunity to work in another country and come back with that added experience, Jayanthi said — Shahrill Basri/TheSun
Canada has some wonderful universities where students can look forward to a bright future, Ajay said — Shahrill Basri/TheSun
IN Malaysia, the UK is the most popular destination for students to further their studies, followed by Australia. In its multi-destination strategy, IDP Education Limited has decided that besides continuing to focus on these destinations, the company will also focus on destinations such as US, New Zealand and the latest addition, Canada.
"Canada has come up as a new destination for a few reasons. The country has a great environment and is a very welcoming country in terms of academic students as well as migration. It has some wonderful universities where students can look forward to a bright future," said IDP Education Limited Country Director, Ajay Rao. "It may not be a very popular destination for Malaysian students compared to UK or Australia, but it is a destination for the future".
Canada has one of the most employable education systems, not forgetting that they are also very research focused. Some of the top research universities are located in Canada, and they have a few highly ranked universities, easily in the top 50 and top 100 in the world. Students get two ends of the spectrum to suit a wide range as not all students are academically inclined, while some want more practical courses.
"The education structure in Canada is a little different from the others where they offer four-year degrees, unlike UK which has three-year honours degrees. Also, UK degrees are more specialised compared to Canada which are broader, however students are encouraged to take as many electives as possible from the core subjects," said Jayanthi Thevarajah, IDP Education Limited, Destination Head – UK (Malaysia, Indonesia and South Korea) & New Zealand and Canada (Malaysia).
"It also helps that the fees are affordable, ranging between CAD14,000 and CAD30,000 (approximately between RM45,222 and RM96,904) a year. Living costs in Canada averages around CAD15,000 (approximately RM48,444) a year, depending where you are. It is fairly affordable if you work out the maths for four years," she added.
Students who are interested to further their studies in Canada can do a Canadian Pre-University qualification after their SPM, which is offered in a few private colleges, or alternatively, they can get admission into a Canadian institution if they did A Levels, which is quite a universal pre-university programme.
IDP has its own client relations team in Canada who liaise with the institutions out there. Some of the universities they are working with include University of Alberta, Queen's University, and Carleton University which has many Malaysian students. Also, the University of Guelph has the top veterinarian science course in the world, while the Emily Car University of Art and Design is one of the top universities in the world just for art and design.
"Our complete partner list at the moment is about 50 partners, but this list will expand to include the others," Jayanthi said.
Canada institutions have two intakes a year in January and August, and their application deadline is quite early where they will be closing by March. However, some universities will extend their application deadlines until May or June. Also, Canada universities are different in that most of them will have an application fee, and they will take between four and six weeks to turnaround the application.
In terms of visa application, there is a local visa agency in Malaysia and IDP offers support to the students by helping them with their application from how to fill up the application to what documents they need to submit. Student visa takes a longer time to process, and will take between four to seven weeks.
"I think Malaysians are now looking at being globally employable, and Canada welcomes its graduates to stay on and work. Students are not necessarily looking to migrate, but they just want the opportunity to work in another country and come back with that added experience. This is particularly appealing which is not so obvious in other countries," Jayanthi said.
"Our aim is very ambitious. Currently for Malaysia, our long term plan is to have 600 students going yearly to Canada. We are aware that we launched in April and we may not start big this year, but I think we need to go through the motions of learning and gearing up for next year," she added.
The share price of IDP Education Ltd (ASX: IEL) could be poised to rally to a fresh record high even after it staged a 25% rally since the start of this calendar year, if Morgan Stanley is to be believed.
The stock has been consolidating around the $5 mark for the past month and the broker thinks there is an 80% chance the international student placement services company will outperform the market in the next 60 days and run up towards its price target of $5.75.
Jump on for the ride! One of the key drivers for the bullish call is the broker’s belief that the strong structural industry tailwinds are sustainable given China’s ongoing transition to a high-income economy and Australia’s position to support this transition.
The company is stepping up its China operations through an agreement to buy 20% of HCP Limited, a Chinese company specialising in delivering English language test preparation materials via social media and a mobile app.
We will see an increase in the computerisation of such tests with the Australian government aiming to deliver a computer-based International English Language Testing System (IELTS) by the end of this calendar year. This could prove to be an inflection point for the stock, according to Morgan Stanley.
In spite of the tighter immigration control implemented by our government and the scrapping of the 457 visas, the broker sees limited impact to IDP Education’s bottom line. In fact, Morgan Stanley believes our government is promoting study as the preferred path to immigration.
These factors, including potential market share gains, should continue to support the company’s above-industry earnings growth.
“We see defensive earnings, unexposed to the domestic Australian economy and leveraged to a projected lower Australian dollar,” said Morgan Stanley.
“We believe the stock will trade towards our price target of $5.75, which implies that it holds its multiple and grows into its valuation.”
IDP Education FY17 Result
Published on August 22, 2017
IDP Education Limited (ASX: IEL) today announced its results for the 2017 financial year (FY17).
For the twelve months to 30 June 2017, the company reported total revenue of $394.2 million, an increase of 9% compared to FY16. Earnings before interest, tax, depreciation and amortisation (EBITDA) was $68.4 million which represents growth of 12% compared to FY16.
On a constant currency basis, the company recorded strong growth. After removing the effects of foreign exchange movements between FY17 and FY16, total revenue increased 13% and EBITDA was up 17%.
IDP Education Chief Executive Officer and Managing Director, Andrew Barkla, said the performance reflected the continuation of IDP Education’s organic growth strategy and provided solid financial foundations for the company’s digital transformation.
“In FY17 we defined a vision to build the world’s leading platform and connected community to guide international students through their study journey to achieve their learning and career goals,” Mr Barkla said.
“To enable this vision, this year we invested significantly in building a network of brands, platforms and data to give us unparalleled insights into the behaviours and needs of customers,” he said.
IDP Education’s operational and financial highlights during FY17 included:
The performance of IDP Education in FY17 represents a continuation of the organic growth that the company has been experiencing over the past five years. This growth has been underpinned by the ongoing global growth in the international education industry and the central role of English as a key global language. IDP Education has a global footprint and diversified business model that benefits from both of these global trends.
IDP Education’s Asian operations posted another strong year of growth and continue to be a key driver of the company’s profitability with more than 65% of group EBIT (excluding corporate overhead) coming from the region in FY17.
The region includes both India and China which are the key engines of growth for the international education industry more broadly. These countries have large populations that are experiencing rising wealth and a high propensity to invest in education both domestically and abroad.
IDP Education’s English Language Testing business also had a solid year. FY17 saw IDP expand its IELTS network to Nepal, Japan, Greece, Germany and Cyprus. This helped contribute to a 6% increase on the number of tests (909,800) IDP Education delivered compared to FY16.
In FY17, the number of organisations recognising IELTS results reached 10,000. This cemented the test’s position as the world’s most recognised high-stakes test for study, work and migration purposes – a significant milestone for IDP and its IELTS partners, the British Council and Cambridge English Language Assessment.
IDP Education’s English Language Teaching business posted revenue growth of 4%. This was driven by volume growth with an 11% increase in courses delivered across the company’s 10 schools. The company’s Cambodian business was the stand-out performer and continues to be a market leader in that country.
* “Constant Currency Growth” is calculated by restating the prior comparable period’s financial results using the actual FX rates that were recorded during the current period
**IDP Education considers NPATA (net profit after tax and after adding back the tax effected amortisation expense related to acquired intangibles), rather than NPAT, to be a more meaningful measure of after tax profit due to the non-cash amortisation of acquired intangibles that is reflected in reported NPAT
IDP Education’s Board of Directors has declared a final dividend of 5.5 cents per share which is expected to be 55% franked. The record date for the dividend will be 7th September 2017 with payment to be made on 28th September 2017.
"Looking to FY18, our focus is on the global roll-out of a new digital platform to underpin our digital transformation,” Mr Barkla said.
“We are setting out to build the world’s most definitive database and connected international student community.
“The compelling rationale for this investment in technology infrastructure and innovation is the consolidation of our global data into one comprehensive view of international students’ behaviours and needs.
“Our aim is to enable our expert education advisors to connect with students much earlier in their decision-making journey and continue that relationship as the student moves from their home country to their study country, and then beyond into employment.
“IDP Education’s customers access our services at life-changing junctures. Our goal is to support more students, and provide them greater choices and opportunities to realise their global ambitions,” he said.
Impresionante lo fuerte que está, 5 % arriba y nuevo máximo histórico
Muy buena noticia
IDP Education : launches student placement service in Lebanon in partnership with Netcom Systems
009/01/2017 | 08:43am CEST
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Students from Lebanon will now be able to fulfil their dreams of overseas study with one of the world's leading international education specialists, following the announcement of a new partnership between Netcom Systems Testing and IDP Education.
IDP Education is the global leader in international student placement services, with a network of more than 90 placement centres in 32 countries around the world.
The student placement partnership builds on a close relationship between the two education service providers. For the past two years, Netcom has partnered with IDP Education in Beirut to deliver IELTS, a leading English language test that is co-owned by IDP Education.
Under the new agreement, Netcom Systems will expand its services to assist Lebanese students in gaining entry into leading universities and colleges in the top English-speaking destinations: USA, UK, Canada, Australia and New Zealand.
IDP Education Country Director Sabry Shehata said the agreement will provide great opportunities for students in the region to achieve their global study ambitions.
'IDP Education welcomes the partnership with Netcom Systems. This initiative will enable Lebanese students to experience a unique educational counselling service, which can assist them with their plans to study aboard and benefit from international opportunities,' he said.
With a highly-trained team of educational counselors, Netcom Systems will offer students and their families unbiased advice on available study programs to suit their needs. A personal education counsellor will guide the student step-by- step to understand admission requirements for the different programs, prepare and submit applications and supporting documents, and receive and accept the admission offer.
The services will also include support to prepare visa applications, accommodation arrangements and a pre-departure briefing to prepare the students for a smooth transition in their study destination.
'We are looking forward to beginning our work with Netcom Systems - we believe students will immediately begin to see the benefits that this partnership,' Mr Shehata.
Idp Education Ltd. published this content on
01 September 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 01 September 2017 06:42:04 UTC.
Siguen en fuerte crecimiento, vuelve a subir y se situa en subida libre. Ultimas noticias
IELTS numbers rise to three million a year
Sep. 8, 2017, 04:00 AM
IEL & The International Education Boom
BY STUART JACKSON - 06/09/2017 | VIEW MORE ARTICLES BY THE MONTGOMERY TEAM
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IEL Continues To Profit From The International Education Boom
The education of international students is now Australia’s third largest export – just behind iron ore and coal. One high quality business that has successfully leveraged off this growing industry is IDP Education (ASX: IEL). IEL is a global leader in international student placement services. It recently reported their FY17 results that point to a robust business with good prospects.
While net profit growth of just 4 per cent appears pedestrian on the surface, this is largely due to a one off tax benefit that boosted the prior year figure, the impact of the rising Australian dollar as well as some one-time costs from the acquisition of Hot Courses at the end of January. When we dig below the surface, the results show continued strong momentum in the core English Testing and Student Placements businesses.
In the English Language Testing Business, volumes increased 9 per cent in the six months to June relative to the same period last year. This is despite the disruption from the demonetisation in India reducing test volumes by another 15,000 in the March quarter. Adding these test volumes back implies sustainable growth of 12.5 per cent as IDP’s share in Australia stabilised and organic growth in other markets was boosted by the entry into markets like Nepal and Japan. Importantly, volume growth in India returned to ‘pre-demonetisation’ levels in the June quarter. This points to another year of very strong test volume growth in FY18 as the business cycles the impact from FY17.
In the Student Placements business, volume placed into Australian institutions grew 4.2 per cent in the six months to June while placements into international institutions grew 20 per cent. The benefit of increased diversity in the student destination offering was evident with changes to visa regulations and political concerns in the UK and US being offset by strong volume growth into Canada and New Zealand.
The results showed continued momentum on domestic commission rates with average revenue per placement increasing 10.4 per cent in the six month period relative to the prior year, as IDP renegotiates its commission rates to bring them into line with competitors. The company renegotiated contracts with 15 universities during the year, and has around half as many yet to finalise. This should see good yield growth continue into FY18.
The other comments of note relate the performance of Hot Courses business, which was acquired at the end of January.
Hot Courses runs tertiary institution and course information websites such as hotcourses.com, hotcourseabroad.com and thecompleteuniversityguide.co.uk, with around 70 million visitors each year. It primarily generates revenue from the sale of advertising space on its websites. However, it also sells subscriptions to universities in which data on visitor traffic to the pages relating to that university’s courses is provided for lead generation.
While only a small part of the revenue base for Hot Courses, this data presents IDP’s Placements business with an enormous and potentially powerful source of student leads. The main constraint on growth in the Placements business is leads rather than agent capacity. By passing this data to IDP’s agent network, it could step change the volumes in the business.
From early June, IDP undertook a trial using the data that was not purchased by one of its university customers. This data yielded 5,000 leads over a 10 week period. The interesting part is that 59 per cent of these leads were converted into hot or warm leads. This conversion ratio compares to an 18 per cent conversion ratio of leads from IDP’s current website. While very early days, this highlights that Hot Courses could be a very powerful source of high quality leads for IDP’s Placements business.
As we look to FY18, the outlook for testing and placement volume remains strong. While the continued appreciation of the Australian dollar will dampen revenue growth to some extent, it will also reduce foreign currency denominated costs. The lower realised rate on the British Pound due to high hedge rates will result in lower English language test fees paid to Cambridge Assessment, boosting Testing gross margins.
IDP will begin to roll out its new computerised testing product later this year, starting with Australia. This has the potential to cause some near term disruption, but it is an important milestone in ensuring the competitiveness of the IELTS product and its ability to meet the needs of a range of consumer preferences.
The company will also continue to take costs out of the testing business and reduce the time taken to post results by expanding the number of countries utilising computerised marking to 38 from 29 at the end of FY17.
FY18 will see Hot Courses contribute on a full year basis. The business has been integrated and progress in delivering the strategic benefits of the acquisition will be an important factor to track through the year.
While there will inevitably be other factors presenting headwinds to the outlook that come up during the year, FY18 looks like another year of good progress for the company
Crecen en India, impresionante el mercado que tienen por delante