Australia’s IDP Education Corp. , the world’s leading provider of study abroad services, issued a forecast on the same day, Reuters reported Wednesday, the change of multi-country student visa policy has seriously affected the market demand for its services. IDP expects adjusted operating profit of a $115m-a $125m in fiscal 2025, down almost half from last year. The news sent IDP shares plummeting at the start of trading, plunging as much as 48.3 per cent, the biggest intraday drop in the company’s history. The stock ended the day down 45 per cent at a $4.11, pushing it close to an eight-year low and making it the worst-performing stock on the S & P ASX 200 index for the day.
IDP Education, which operates the IELTS test globally with the British Council and Cambridge University Foreign Language Examinations, also provides placement services to foreign universities. However, the current study abroad policy environment has taken a heavy toll on its business. It said post-election policies in Canada and Australia remained strict, while a recent white paper on immigration policy in the UK hinted at further restrictions on student migration. Washington is also seeking to step up deportations and revoke student visas as part of its tough immigration agenda. IDP education said in a statement Wednesday that the international student environment in the United States is“Increasingly unfavourable.”.
The number of international students in IDP’s four main markets will fall 28% year-on-year in the first three quarters of fiscal year 2025, according to visa data cited by the Australian financial review on the 3rd. Its language-testing business is expected to decline by 18% to 20% . Despite years of monopolies in several key markets, IELTS is facing increasing competitive pressure as new players pour in. IDP believes that while elections are being held in all major destination markets, policy uncertainty continues and economic instability is increasing. However, it said it remained“Confident in the long-term drivers of the industry” and was prepared for future challenges.