IDP Education FY16 Result
IDP Education Limited (ASX: IEL) today announced its financial results for the 2016 financial year (FY16).
For the twelve months to 30 June 2016, the Company reported total revenue of $361.6 million, an increase of 17% compared to FY15. Net profit after tax (NPAT) was $39.9 million which represents growth of 32% compared to the FY15 pro-forma.
Andrew Barkla, IDP Education Chief Executive Officer and Managing Director, said the results reflected a continuation of the Company’s strong underlying organic growth profile across each of its product categories: Student Placement, English Language Testing and English Language Teaching.
According to Mr Barkla, IDP Education’s operational and financial highlights during FY16 included:
- Record full year revenue and earnings with double-digit revenue growth in each of the Company’s core product categories
- Very strong performance from Student Placement with the highlight being a 100% increase in revenue from the placement of students to UK, USA, Canada and New Zealand (IDP Education’s ‘multi-destination’ countries)
- Revenue from IDP Education’s Australian Student Placement business up 17% driven by solid growth in both volumes and average fees
- English Language Testing performing strongly with revenue from IDP Education’s global IELTS operations up 11% on FY15
- Strong cash generation which resulted in a balance sheet with $35.4m of net cash as at 30 June 2016
Importantly, the results exceeded the forecasts provided in IDP Education’s IPO prospectus dated 12 November 2015, with EBIT 6.0% ahead of forecast and NPAT 12% above.
The strong performance reflected the combined effect of volume and price growth in each of the company’s business lines.
In Student Placement, volume growth of 18% combined with an average realised fee increase of 13% to deliver 33% revenue growth for the year. Within this category, the Company’s ‘multi-destination’ strategy delivered strong results with placement volumes to the UK, USA, Canada and New Zealand up 72% relative to FY15.
Mr Barkla commented that the “growth and diversification benefits of the multi-destination strategy is clearly evident in the result with our China and India businesses in particular delivering strong results”.
In English Language Testing, IDP Education’s IELTS volumes were up 4% for the year which, combined with a 7% increase in average realised fee, drove the 11% revenue growth for the year. The result reflected the benefits of a broadly diversified global portfolio of testing locations and recognising organisations. IDP Education’s IELTS operations in Asia experienced strong growth during the year with India in particular benefiting from surging demand for study and migration in key English speaking countries.
IDP Education’s English Language Teaching business posted revenue growth of 26%. This was again driven by volume and price growth with a 14% increase in student volumes combining with a 10% increase in average course fees. The Company’s Cambodian schools were stand-out performers and continue to be market leaders in that country.