Record financial results as IDP leads sector recovery
IDP Education28 September 2022
IDP Education (ASX:IEL) today announced its results for the 2022 financial year (FY22).
For the 12 months to 30 June 2022, the company reported total revenue of $793 million, an increase of 50 per cent compared with the same period in FY21.
Adjusted earnings before interest and tax (EBIT) was $163 million, an increase of 127 per cent compared with FY21.
Andrew Barkla, IDP Chief Executive Officer and Managing Director, said the record result reflects IDP’s unwavering commitment to delivering its ambitious strategy and decision to retain its global teams through the pandemic.
“This year, as global mobility resumed, IDP customers reignited their international dreams. When they did, our teams were by their side with new innovations that helped them fast-track their goals,” Mr Barkla said.
“Importantly, we strengthened our relationships with our customers, evidenced by a four-point increase in our global Net Promoter Score across the year,” he said.
Mr Barkla said the growth demonstrates IDP’s diverse, omni-channel strategy with expansion in both its geographic footprint and its digital platform.
“In addition to expanding our IELTS and student placement office network in key growth markets, we also delivered new data-driven study application services that will move our industry forward,” he said.
IDP’s operating and financial highlights forFY22 included:
Placed students into a record 55,400 courses, with growth across all destinations
Highest ever IDP IELTS testing volumes of almost 1.92 million tests, a 67 per cent increase on FY21 levels
Successfully integrated the British Council’s IELTS operations in India with financial synergies significantly ahead of plan
Delivered record EBIT (Adjusted) and NPAT (Adjusted)* margins evidencing the operational leverage in the business model
Expanded geographic footprint with more than 101 new computer-delivered IELTS centres and 29 student placement offices opened
Introduced FastLane, the next generation student of recruitment services, delivered through IDP’s global platform
Launched IELTS Online, enabling greater choice and flexibility for test takers
Dividend of 13.5 cps declared for H2 FY22 taking FY22 dividends to 27.0 cps
In student placement, FY22 saw IDP launch new services to make the complicated process of applying to a university faster, easier, and more accurate.
“This year we launched FastLane, an innovative new service that harnesses IDP’s unrivalled global dataset and client relationships to enable students to receive real-time in-principle offers from leading institutions,” Mr Barkla said.
“FastLane is an example of the next generation services IDP is delivering for students and clients as a result of our investment in digital infrastructure, data science capabilities and service excellence,” he said.
In its English language testing business, IELTS volumes increased 67 per cent, largely driven by IDP’s acquisition of the British Council’s India operations.
“This year we added more than 101 new computer-delivered centres to our global network and introduced IELTS Online, reiterating our commitment to customer accessibility, flexibility and choice,” Mr Barkla said.
*During FY21, the Group revised its accounting policy in relation to upfront configuration and customisation costs incurred in implementing Software-as-a-Service (SaaS) arrangements in response to the IFRIC agenda decision clarifying its interpretation of how current accounting standards apply to these types of arrangements, in particular AASB 138 Intangible Assets. Historical financial information has been restated to account for the impact of the change.
**“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
*** Adjusted EBIT and NPAT excludes merger and acquisition expenses which related to the acquisition of the British Council’s Indian IELTS operations and acquired intangible amortisation and consultancy and professional expenses incurred in shareholders’ restructure project
Mr Barkla, who will step down as IDP’s Chief Executive Officer and Managing Director in September, commended IDP’s global team for the result.
“This year, IDP’s team of experts evolved our services and further cemented us as the global leader in our sector,” Mr Barkla said.
“I am immensely proud of my 5,000 IDP colleagues. With their expertise, IDP is leading our sector’s sustainable recovery and helping more people access global opportunities,” he said.
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IDP Education Limited
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The material in this announcement has been prepared by IDP Education Limited (ASX: IEL) ABN 59 117 676 463 (“IDP Education") and is general background information about IDP Education’s activities current as at the date of this announcement. The information is given in summary form and does not purport to be complete. In particular you are cautioned not to place undue reliance on any forward looking statements regarding our belief, intent or expectations with respect to IDP Education’s businesses, market conditions and/or results of operations, as although due care has been used in the preparation of such statements, actual results may vary in a material manner. Information in this announcement, including forecast financial information, should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities. Before acting on any information you should consider the appropriateness of the information having regard to these matters, any relevant offer document and in particular, you should seek independent financial advice.
Non-IFRS Financial Information
IDP Education uses certain measures to manage and report on its business that are not recognised under Australian Accounting Standards. These measures are collectively referred to as non-IFRS financial measures. Although IDP Education believes that these measures provide useful information about the financial performance of IDP Education, they should be considered as supplemental to the measures calculated in accordance with Australian Accounting Standards and not as a replacement for them. Because these non-IFRS financial measures are not based on Australian Accounting Standards, they do not have standard definitions, and the way IDP Education calculates these measures may differ from similarly titled measures used by other companies. Readers should therefore not place undue reliance on these non-IFRS financial measures.