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Investing.com-- Shares of Idp education fell sharply on Tuesday after the company warned that its key destination markets– such as the UK, Australia, Canada, and the U.S.-- were seeing substantially lower demand due to uncertainty over immigration policies.
Idp Education Ltd (ASX:IEL) slumped nearly 40% to A$4.56, vastly lagging a 0.7% rise in the ASX 200 index.
The company– which offers application and placement services to international students– said its student placement volumes are expected to fall by 28% to 30% in fiscal 2025, while its language testing volumes are expected to fall between 18% and 20% from 2024.
The impact on its revenue will be somewhat mitigated by strong average fee growth, the company said.
Idp’s top destination markets, ie, the locations most preferred by international students, have all introduced or are planning to introduce restrictions on immigration. The UK introduced a white paper on restricting student immigration, while Australia and Canada both announced recent curbs on immigrants.
The U.S. has been the most blatant in its anti-immigration policies, with President Donald Trump cracking down heavily on illegal immigrants while also blocking international students from applying for several U.S. colleges.
Idp said that it now estimates adjusted earnings before interest and tax for 2025 to be in the range of A$115 million to A$125 million ($74 million to $82 million), down sharply from the A$239.4 million EBIT seen in fiscal 2024.
The company said it had engaged in increased cost control measures over the past six months.
Still, the company said that government measures against immigrations were temporary, and that it was confident in its long-term prospects, citing the social importance of international education and immigration.