• Key destination markets continue to be impacted by policy uncertainty, negatively impacting international student market
• IDP's Student Placement volumes expected to decrease by 28-30% and Language Testing volumes by 18-20% in FY25
• Adjusted FY25 EBIT expected to be in the range of $115m - $125m

IDP Education Limited (ASX: IEL) has provided a market and trading update, noting that its key destination markets continue to be impacted by policy uncertainty, which is negatively impacting the size of the international student market globally. In the UK, there is heightened uncertainty following the release of the Immigration Policy White Paper, with further restrictions on student immigration expected. In Australia and Canada, restrictive policies remain post-election, with further policy changes pending. In Canada, student demand continues to decline sharply due to ongoing policy volatility. The US international student environment is also increasingly negative. This continued uncertainty has impacted IDP's student enrolment pipeline size and conversion rates in the important May and June pipeline build, given the timing of the fall intake in the UK, Canada and the US, as well as the second semester intake in Australia. In FY25, IDP's Student Placement volumes are now expected to decrease by c. 28% - 30%, and IDP's Language Testing volumes are now expected to decrease by c. 18% - 20% compared to FY24. The impact on revenue will be partially mitigated by continued strong average fee growth. IDP now estimates that Adjusted FY25 EBIT for FY25 will be in the range of $115m - $125m. The business has continued cost control initiatives since the half year, with Adjusted Overhead Costs for H2 FY25 now expected to be approximately 5% below H2 FY24, despite IDP's negative operating leverage. With policy uncertainty expected to continue into FY26, as well as the anticipated impact of FY25 enrolment pipeline on FY26 volumes, the business is completing a detailed review of longer-term cost, productivity, investment and commercial levers. IDP remains confident in the long-term growth drivers for the industry and is well-placed to navigate the current challenging market conditions.

In FY25, IDP's Student Placement volumes are now expected to decrease by c. 28% - 30%, and IDP's Language Testing volumes are now expected to decrease by c. 18% - 20% compared to FY24. IDP now estimates that Adjusted FY25 EBIT for FY25 will be in the range of $115m - $125m.

IDP remains confident in the long-term structural growth drivers for the international education market, and believes the long-dated structural growth drivers that underpin the economic and social importance of the international education industry, and immigration more broadly, will support the market's sustainable long-term growth trajectory. With a clear strategy, an experienced global team, and a strong balance sheet, IDP remains well-placed to lead the sector through this period and emerge stronger when conditions improve.