# IEL - IDP Education



## System (18 November 2015)

IDP Education is a leading provider of international student placement services and high-stakes English language testing services, being English language tests for candidates seeking to establish their proficiency in the English language for the purpose of legal or other official requirements. It also owns and operates English language schools in South East Asia and organises educational events and conferences globally.

It is anticipated that IEL will list on the ASX on November 26, 2015.

http://www.idp.com


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## greggles (30 May 2018)

IDP Education's market cap is now $2.3 billion. It has had an amazing run since the beginning of 2017 but has it gone too far too fast?

Anyone have a view on IEL's fundamentals?


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## So_Cynical (30 May 2018)

Its been a spectacular run for an education stock, i work with a guy who has a family member that works there, he put me onto it before the float, i watched and added it to my Superfund the first time it dipped in Dec 2016 @ 3.97 and so thankful that i did, i caught the one and only dip and just bought despite the fact it was trading at near the float price and hadn't actually fallen that much.

I liked that they owned something of value (IELTS) and i could see the potential, i believe in the education story and the drivers behind it, China and Asia, its been a big winner for my suffering Superfund, no way i would be buying it now, that ship has sailed...will keep holding though.


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## galumay (30 May 2018)

Its certainly been the pick of the education businesses! Well done @So_Cynical its nice to get in early and see your judgment vindicated.


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## greggles (7 February 2019)

Outstanding H1 FY19 results for IEL announced today.


> *Global growth for IDP Education in H1 FY19*
> 
> IDP Education Limited (ASX: IEL) today announced its results for the first half of the 2019financial year (H1 FY19).
> 
> ...




Gap up and breakout for IEL following this morning's announcement. Currently up 20.98% to $13.78.


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## barney (7 February 2019)

greggles said:


> . Currently up 20.98% to $13.78.




Unusual to see a near $3 Billion Company gap up 20% … certainly turning over some cash though.


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## rnr (30 April 2019)

IDP Education moves onwards and upwards....yet another consolidation of price is evident.


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## CNHTractor (22 August 2019)

Results out today. I am interested in seeing the market reaction. At half year report it bounced and I sold a portion of my holdings, to my regret. Looking at possibly getting back in, but will see the market reaction today before doing so.

Summary of results:

*IDP Education *(IEL) - FY adjusted NPAT $68.7m vs estimates $68.9m (A$19.57) Revenue $598.1m vs $603.1m. EBIT $97.1m vs forecasts $98.5m. FY19 final dividend 7.5c. Student Placement volumes increased by 25%. The significant growth of Student Placement and IELTS volumes in India contributed to overall record business performance. Balance sheet: $4.4m of net debt. No guidance given. Looking to FY20, the CEO said the company’s focus remains on growing the capabilities of its people and improving the IELTS customer experience.

Some commentary from a newsletter - _"This is a slight miss. Very slight so it will be interesting to see how the market treats it. It may be forgiving given the growth coming from new businesses and Indian IELTS."_


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## bigdog (12 February 2020)

ASX announcements today and share price up 28% currently






12/02/2020 8:14:09 AM FY20 H1 Investor Presentation (uploaded below)_ 
_

IDP Education reported revenue of $379 million, a 25% increase over the same period in FY19. Earnings before interest and tax (EBIT) increased 49% over the prior corresponding period (pcp) to reach $86.9 million.

In H1 FY20, adjusted earnings per share increased by 41% to 23.4 cents. An interim dividend of 16.5 cents per share was declared, franked at 17%.

IDP Education’s student placement business saw a 30% increase in volume, assisted by higher conversions in the sales cycle. Multi-destination markets recorded volume growth of 52%.

IELTS volumes were up 11% for the period and 37 new computer-delivered IELTS centres were opened, taking the total number to 167 centres across the IDP network. The roll-out of computer-delivered testing has been well received with strong adoption rates in key markets.

IDP’s operational and financial highlights during H1 FY20 included: 
• Strong growth in revenue across all business lines along with margin improvement driving a 42 per cent increase in NPATA relative to the same period in FY 19 
• IDP’s Digital Campus was launched in Chennai, enabling rapid product innovation and delivery 
• 37 new computer-delivered IELTS centres were opened, taking the total number to 167 centres across the IDP network 
• Adjusted Earnings Per Share of 23.4 cents per share (+41 per cent) and a 16.5 cents per share interim dividend franked at 17 per cent 
• Continued high levels of customer satisfaction, with 87 per cent of student placement customers likely or highly likely to recommend IDP

307


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## greggles (12 February 2020)

Another great result for IEL. For the six months to 31 December 2019, the company reported total revenue of $379 million, an increase of 25% compared with the same period in FY19.

This stock has been a little ripper in the last four years, up from around $4 in March 2017 to a high of $22 today. 

The Results Overview speaks for itself with across the board increases in all business lines.






Overall, a sensational performance that looks set to continue as a result of strong management that clearly understands the sector and the global demand.


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## Dona Ferentes (20 August 2020)

up 28%

For the twelve months to 30 June 2020, the company reported $107.8 million earnings before interest and tax (EBIT), representing an increase of 11 per cent compared to FY19. The net profit after tax and amortisation (NPATA) was $70.4 million, up three per cent on the year prior.

Andrew Barkla, IDP Chief Executive Officer and Managing Director, commended IDP’s global team for delivering solid results.


> Our results reflect strong momentum in the first of the half year, followed by a pivot towards disciplined capital management and product innovation in the second half,” Mr Barkla said. “Our recent investment in digital talent and our technology platform has enabled us to respond to COVID-19 restrictions with agility and customer centricity,” he said.



Key highlights of the year included: 
• Accelerated digital strategy delivery, resulting in an industry-leading virtual counselling and event platform 
• Rapid roll-out of IELTS Indicator, an online IELTS test to help students progress applications where in-centre testing was suspended 
• An increase in student placement volumes of three per cent to 51,000 - underpinned by a 28 per cent increase in multi-destination volumes 
• Strong B2B client orders, reflecting the industry’s demand for data-driven insights 
• Balance sheet enhanced by the $254 million equity raise and $175 million working capital facility  
• Disciplined cost control measures that delivered $35 million in overhead savings in H2 c/f with H1 
• Cash balance of $307 million as of 30 June 

Mr Barkla said although many international students’ plans were on hold due to travel restrictions, *demand for international education remained strong.*


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## finicky (15 September 2020)

A gap! If you get close to the screen you can see it under $18.
Another Rog Montgom blunder which sees him from 1.36 promoting IEL in a session filmed 12 Feb 2020.
"the highest quality in the small cap space". Later he doubles up and says its their highest small cap holding. This was directly after a 30% rise on results and literally a day or two before it peaks at $25. A month later it Wuhan bottoms at $10. The guy's like William H Macy in 'The Cooler'


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## Dona Ferentes (15 September 2020)

Woger the Wabbit.


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## So_Cynical (15 September 2020)

finicky said:


> Another Rog Montgom blunder which sees him from 1.36 promoting IEL in a session filmed 12 Feb 2020.
> "the highest quality in the small cap space". Later he doubles up and says its their highest small cap holding.




Everyone one was wrong in early february..


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## finicky (15 September 2020)

@So_Cynical
True I guess but I love to see an intellectual who thinks he's got all the bases covered fall flat on his face and R.M's good for that.
Also I don't think he's above promoting something his fund is loaded up on to put a cushion under the price.


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## galumay (16 September 2020)

He certainly has history.


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## Clansman (16 September 2020)

So_Cynical said:


> Everyone one was wrong in early february..




It's the same rhetoric that RM used for stocks like MCE and FGE in the past. Ask him how that is going for him?
There is a difference between an expert and an expert at sounding like an expert. The former he isn't and the latter his game has slipped as well.


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## So_Cynical (16 September 2020)

Clansman said:


> It's the same rhetoric that RM used for stocks like MCE and FGE in the past.



Yes i remember both sagas, he certainly was very keen.


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## Clansman (18 September 2020)

finicky said:


> @So_Cynical
> True I guess but I love to see an intellectual who thinks he's got all the bases covered fall flat on his face and R.M's good for that.
> Also I don't think he's above promoting something his fund is loaded up on to put a cushion under the price.




What is hilariously amusing is Roger taking umbrage at the gentleman from Shaw and Partners disagreeing with him and going all in at the end.
IDP hasn't recovered and the selection of the other fellow has run from $9 to nearly $15. There's nother faux pas in there with Roger referring to comments made by the management of CTD as disingenuous. CTD has gone from around $9 to nearly $17 in the same timeframe.


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## Dona Ferentes (17 October 2020)

back on subject,
.... Australia's universities have put a for-sale sign on a $2.2 billion sharemarket investment in the hope of replenishing their depleted income. Education Australia – a holding company owned by all 38 public universities – told the Australian Securities Exchange it was "undertaking a consultation process" that could lead it to selling its 40 per cent holding in IDP Education.


> The impact of COVID-19 has presented EA shareholders with material financial challenges, and the investment in IDP Education represents a potential source of capital for a number of the university shareholders," the directors of Education Australia said



The universities created Education Australia in the late 1960s to take advantage of rising interest in higher education in Asia. When it was floated in 2015 under the name IDP Education, the universities retained a substantial stake – which is the holding now being being put on the market. IDP Education partnered with the British Council and Cambridge University to create the International English Language Testing System, which is considered one of the best in the world.  IDP Education, based in Melbourne, is the world's biggest English-language testing company.

In August, chief executive Andrew Barkla said nearly three-quarters of the students on IDP's books wanted to resume their studies once the pandemic was over. 







> "We have a pipeline right now of 82,000 students ... for the September through March intake period. So those are students who have applications from our source countries and they're ready to go. Once restrictions ease, either they'll travel or study online," said Mr Barkla.


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## Trav. (10 January 2021)

I like the look of the chart here. Recovering nicely and momentum on the way up.


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## Dona Ferentes (12 March 2021)

Thirty-eight Australian universities stand to raise nearly $70 million each following a proposal for a restructure within IDP Education that would give each institution direct control over its stake in the company.

Under the proposal, the universities, which own 40 per cent of a holding company called Education Australia, would see 25 per cent distributed to each university with the remaining 15 per cent stake sold via a block trade valued at nearly $1 billion by December 11.

Shares in IDP dropped sharply after the announcement, ending the day 5.65 per cent lower at $22.86. At that price the company is valued at $6.36 billion, putting a price tag of $954 million on the parcel being put up for sale this year – or $25 million for each university – and $1.6 billion on the shares being retained.

Restrictions placed around the sale of shares by the 38 universities include that they would not be able to dispose of any IDP shares until May 2022, and in the following six months would be only able to dispose of up to 50 per cent of their stakes

_Education Australia was created in the late 1960s as the Colombo Plan brought international students, particularly from Asia, into the country, as a measure in soft diplomacy. IDP Education was created in 2015, _*with universities retaining a 40 per cent stake.*
_
IDP education owns the International English Language Testing System, along with the British Council and the University of Cambridge. IELTS, long considered the gold standard in English-language testing, is an international standardised test of English-language proficiency for non-native speakers wishing to study in another country._

since listing:


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## Dona Ferentes (2 July 2021)

Summary
• _IDP has entered into a binding agreement to acquire 100% of the British Council’s Indian IELTS operations 
• Post transaction IDP will be the sole distributor of IELTS in India_
• Total consideration of £130m (A$238m) on a cash free, debt free basis

• The transaction will be funded from existing cash and debt facilities 
• IDP will maintain a strong balance sheet post transaction


up more than 15% to a new high hitting $29.40; now settling around $28.80


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## greggles (2 July 2021)

Another great acquisition for IEL. India is a huge market for IELTS. This should be a real driver of revenue growth for the company.

The announcement outlined some of the key benefits of the acquisition.



> The acquisition is highly strategic for IDP and provides several benefits:
> 
> Increased exposure to the high-growth Indian IELTS market
> Simplified distribution arrangements providing the opportunity to simplify and improve the delivery of IELTS to test takers in India
> ...


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## Dona Ferentes (2 July 2021)

and closed near high for the day... $29.44


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## Dona Ferentes (12 February 2022)

greggles said:


> Another great acquisition for IEL. India is a huge market for IELTS. This should be a real driver of revenue growth for the company.



_certainly the market thought that could be the case, but the story may be obscured by ongoing pandemic restrictions. Yes, there was enthusiasm, and that run from the mid $20s in July to nudge $40 in November has not been sustained. With H1 results announced on Wed, another 10% was taken off to close on Friday at $28.50. Costs/ "investing for growth" seem to be the issue. And all those valuation metrics ... off scale? And Intangibles !!_

English language testing and international student placement group IDP Education is taking comfort from signs Australia’s foreign education market may be stirring, but it was India that drove growth in the December half. English language tests in* India soared *97 per cent year-on-year, with total revenue from the country soaring *150 per cent. *The acquisition of the British Council’s English language testing business has been a springboard for wider Indian expansion, with 27 new student placement offices opened during this financial year, taking the total to 67.

 Total revenue of $397 million, representing the highest half-year revenue ever recorded by IDP.
IELTS volumes increased by 79%, with growth recorded across the majority of countries where IDP administers the test. 
Successful integration of the British Council’s Indian IELTS operations, following acquisition.  
A 36% increase in Student Placement revenue, highlighted by a 73% increase in Multi-Destination revenue. 
Digital Marketing revenue rose by 13% to $20 million as our institutional clients turned to IDP to support their rebound strategies. 
Ongoing digital transformation program for student placement and IELTS, with downloads of the recently released IDP Live app reaching 500,000
_Costs/ "investing for growth" seem to be the issue_. 
• Overhead costs per month (preAASB16) averaged $22m in H1 FY22 v $16m in H1 FY21 and $18m in H2 FY21
• Marketing spend increased by 73% v pcp reflecting a focus on building the pipeline for future intakes
• Broad-based hiring resumed during the period with expansion of digital and customer facing roles designed to drive future revenue growth


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## Dona Ferentes (1 March 2022)

Barrenjoey’s equities desk moved an $84 million trade on Monday on the same day IDP Education’s university shareholders were allowed to sell for the first time in six months. It is understood the trade was made on behalf of three unis while a fourth uni sold half of its holding.

IDP Education’s 38 university shareholders, which collectively hold a 12.5 per cent stake, were long-time investors in the company via an entity called Education Australia; this was dissolved last year.
The 38 universities have since owned 25 per cent of IDP Education in their own names.

- _but I could imagine the VCs are looking at their balance sheets and reprioritising._


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## Dona Ferentes (25 August 2022)

IDP Education’s profits have rebounded 159 per cent to $102.8 million as COVID-19 restrictions lifted.

Revenue, compared to FY21, grew 50 per cent to $793.3 million, 
First half revenue growing 47 per cent primarily from the 62 per cent growth in International English Language Testing System revenue.
Second half revenue grew by 53 per cent with Student placement revenue up 68 per cent and IELTS revenue up 52 per cent compared to the same period in FY21.
EBIT rose 148 per cent to $158.9 million as a result of “_strong revenue growth in our key revenue lines, student placement and IELTS_”.
_Market liked it; up 12% and now $30.00_


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