• Revenue declined 18% to $475.4m due to market-wide declines in student volumes
• NPAT declined 39% to $59.7m due to the challenging student volume environment
• Gross profit margin declined to 61.3% from 64.6% in H1 FY24

IDP Education Limited reported its H1 FY25 interim financial results, which reflected the challenging student volume environment in the period. Revenue declined 18% to $475.4m, driven by lower volumes across key destinations such as Canada, Australia, UK and USA, partially offset by a 12% increase in average price. Student Placement revenue declined 15% to $244.2m, while English Language Testing revenue fell 22% to $209.5m. Gross profit margin declined to 61.3% from 64.6% in H1 FY24, and Adjusted EBIT declined 42%, reflecting the impact of lower volumes from higher gross margin countries and increased China sub-agent volumes. However, the company's focused and disciplined approach to costs helped mitigate the impact, with direct costs declining 10% and overhead costs falling 16%. From a geographic perspective, the Asia segment, which accounts for around 67% of group revenue, saw a 25% decline in revenue and a 40% drop in EBIT. The Australasia segment recorded a 27% increase in revenue and a 118% jump in EBIT, while the Rest of World segment saw a 3% revenue decline and a 4% EBIT increase. Overall, H1 FY25 net profit after tax declined 39% to $59.7m compared to the prior corresponding period.

The company did not provide any high-importance, price-sensitive forward-looking financial metrics.