IDP Education Reports Lower Annual Profit Amid Student Visa Challenges

Key Takeaways

• IDP Education’s H1 FY25 revenue dropped 16% amid stricter student visa policies in Australia, Canada, and the UK.
• IELTS testing volumes fell 24%, mainly due to visa issues reducing international student mobility, especially from India.
• IDP cut 6% of staff and lowered costs by 14% while diversifying into digital learning and new markets.

On June 3, 2025, IDP Education, a global leader in international student placement and co-owner of the IELTS English language test, issued a profit warning that sent shockwaves through the international education sector. The company reported that its annual profit would be much lower than expected, blaming ongoing student visa issues in key destination countries like Australia 🇦🇺, Canada 🇨🇦, and the United Kingdom 🇬🇧. This announcement led to a sharp drop in IDP’s share price and raised serious questions about the future of international student mobility.

Why Are Student Visa Issues Hurting IDP Education?

IDP Education’s business depends heavily on helping students move abroad for their studies and on running the IELTS test, which is often required for student visa applications. Since 2023, Australia 🇦🇺, Canada 🇨🇦, and the UK 🇬🇧 have all made it harder for international students to get visas. These changes include:

• Visa caps: Limits on the number of student visas issued.
• Higher visa fees: Making it more expensive to apply.
• Stricter processing: More checks and longer wait times.
• Dependants ban: In the UK, most international students can no longer bring family members with them.
• Tougher financial requirements: Students must show they have more money before they can get a visa.

These policies have made it much harder for students—especially from countries like India—to study abroad. As a result, fewer students are applying, and IDP’s business is suffering.

The Numbers: How Much Has IDP Education Been Affected?

The impact of these visa changes is clear in IDP’s latest financial results. Here are the key figures from the first half of the 2025 financial year (July–December 2024):

• Revenue: A$475.4 million, down 16% from the previous year.
• Adjusted EBIT (Earnings Before Interest and Taxes): A$92.7 million, down 40%.
• Student Placement Volumes: 42,016, down 27%.
• IELTS Testing Volumes: 683,708, down 24% (with the biggest drop in India).
• English Language Teaching Volumes: 52,946, up 1%.
• Overhead Costs: Reduced by 14% to A$167.8 million.
• Staff Reductions: 6% cut in global workforce (from over 6,800 employees).

For the full year ending June 2024, IDP’s total revenue was A$1.04 billion (up 6% from the previous year), but this was before the sharp downturn seen in the second half of 2024 and early 2025. IELTS volumes for the year were 1,584,100, down 18%, with India seeing the sharpest decline.

What’s Behind the Policy Changes?

Governments in Australia 🇦🇺, Canada 🇨🇦, and the UK 🇬🇧 have all tightened their student visa rules for similar reasons:

• Managing migration: There is growing concern about the number of people moving to these countries, especially after the COVID-19 pandemic.
• Housing shortages: Some governments say there aren’t enough homes for both local residents and new arrivals.
• Protecting local jobs: There is pressure to make sure that jobs and resources are available for citizens.
• Preventing abuse: Authorities want to stop people from using student visas as a way to migrate without really studying.

These changes have made it much harder for international students to get visas, especially those hoping to bring family members or stay and work after graduation.

How Are Students Affected?

For students, the new rules mean:

• More rejections: Higher visa refusal rates, especially for applicants from India and other major source countries.
• Longer wait times: Visa processing is slower, making it harder to plan for studies abroad.
• Higher costs: Increased visa fees and stricter financial requirements make studying abroad less affordable.
• No family support: In the UK, most students can no longer bring their spouse or children with them.
• Uncertainty: Changing rules make it hard to know if a student visa application will succeed.

Many students are now looking for other options, such as studying in countries with more welcoming policies or choosing to stay home.

What Does This Mean for Universities?

Universities in Australia 🇦🇺, Canada 🇨🇦, and the UK 🇬🇧 rely on international students for a large part of their income. With fewer students coming, many universities are facing financial problems:

• Lower enrolments: Fewer international students means less tuition revenue.
• Budget cuts: Some universities are cutting staff or closing programs.
• Deficits: In the UK, 72% of universities are expected to operate at a loss in 2025/26.

This situation is forcing universities to rethink their strategies and look for new ways to attract students.

How Is IDP Education Responding?

IDP Education is taking several steps to deal with these challenges:

• Cost-cutting: The company has reduced overhead costs by 14% and cut 6% of its global staff.
• Diversification: IDP is investing in digital English learning platforms and expanding into new markets, such as Sub-Saharan Africa.
• Focusing on student experience: Despite the tough environment, IDP says it remains committed to helping students succeed.
• Monitoring policy changes: The company is closely watching government policies and adjusting its business strategy as needed.

Tennealle O’Shannessy, IDP’s CEO and Managing Director, said in the latest results announcement:

“We are proud of the results our global team delivered in H1 FY25, in the face of the international education sector’s well-documented regulatory challenges. We have succeeded in optimising key controllables including market share, cost and average price, underpinned by our unwavering focus on the student experience, to offset the impact of factors outside our control, such as government policy.”

Step-by-Step: How Policy Changes Affect IDP’s Business

1. Governments introduce stricter visa policies (such as caps, higher fees, and bans on dependants).
2. Student demand drops in affected countries, especially from India and other major source countries.
3. IDP’s placement and IELTS testing volumes fall, leading to lower revenue and profit.
4. Cost-cutting measures are put in place (staff reductions, less spending on non-essential items).
5. Strategic diversification into digital learning and new markets to make up for lost business.
6. Ongoing monitoring of policy changes and student sentiment to adjust business plans.

What Are the Experts Saying?

Investor Perspective

Some financial analysts believe that the market may be overreacting to IDP’s profit warning. They point out that the company still has a strong balance sheet, with A$165 million in cash, and a diverse range of services. These analysts think that when governments eventually relax their visa rules, IDP will be ready to bounce back.

Sector Perspective

Many in the international education sector see the current downturn as part of a cycle. They expect that, over time, demand for international study will recover—especially as countries realize the economic benefits of attracting students from abroad.

Critics

Some critics say that IDP relies too much on IELTS and the Australian market. However, they also note that the company’s push into digital learning and new regions could help reduce this risk.

Background: IDP Education and IELTS

IDP Education is one of the world’s largest student placement companies and co-owns the IELTS (International English Language Testing System) exam. IELTS is a key requirement for many student visa applications, especially in Australia 🇦🇺, Canada 🇨🇦, and the UK 🇬🇧. IDP has offices in more than 30 countries and employs over 6,800 people.

Historically, IDP has benefited from strong demand for study in these countries. But since 2023, all three have made it harder for international students to get visas, leading to a sharp drop in student numbers and revenue for IDP.

The Future: What’s Next for IDP Education and International Students?

IDP expects the international student market to stay weak through at least 2025. The company is preparing for a slow recovery, which will depend on when and if destination countries relax their migration targets and student visa rules.

To prepare for the future, IDP is:

• Investing in digital platforms: Making it easier for students to learn English and prepare for IELTS online.
• Expanding in new regions: Looking for growth in places like Sub-Saharan Africa.
• Keeping costs under control: Staying financially strong to weather the downturn.

Market analysts believe that when countries start to welcome international students again, IDP will be in a good position to benefit from the rebound.

Practical Guidance for Students

If you are planning to study abroad and need a student visa, here are some steps you can take:

• Check the latest visa requirements: Rules are changing quickly. Visit official government websites for up-to-date information. For example, you can find the latest Australian student visa requirements on the Australian Government Department of Home Affairs website.
• Prepare your documents carefully: Make sure you have all the required paperwork, including proof of funds and English language test results like IELTS.
• Apply early: Processing times may be longer than usual.
• Consider alternative destinations: If your first-choice country has strict rules, look at other countries with more open policies.
• Stay informed: Follow updates from trusted sources, such as your chosen university, IDP Education, and official government sites.

Implications for Stakeholders

For Students

• More uncertainty and higher costs: Students face more hurdles and may need to spend more money to study abroad.
• Fewer options for bringing family: Especially in the UK, students can no longer bring dependants.
• Possible shift to other countries: Students may choose destinations with friendlier visa policies.

For Universities

• Financial pressure: Lower international enrolments mean less income.
• Need for new strategies: Universities must find new ways to attract students and manage budgets.

For IDP Education

• Short-term pain, long-term hope: The company is cutting costs and looking for new growth areas while waiting for the market to recover.
• Focus on digital and new markets: IDP is investing in online learning and expanding into regions with growth potential.

Summary Table: Key Financial and Operational Metrics (H1 FY25)

Where to Find More Information

• IDP Education Investor Relations: investors.idp.com
• Official Financial Reports: Available on the ASX and IDP’s investor website.
• Media Inquiries: Contact details can be found on the IDP Education website under “Contact Us.”

For the latest updates on student visa policies, always check the official government websites. For example, the UK Government’s student visa page provides current rules and application steps.

Final Thoughts

IDP Education’s lower annual profit is a direct result of stricter student visa policies in Australia 🇦🇺, Canada 🇨🇦, and the UK 🇬🇧. These changes have made it harder for students to study abroad, hurt university finances, and forced IDP to cut costs and look for new growth areas. However, as reported by VisaVerge.com, IDP’s strong financial position and efforts to diversify its business may help it recover when the international student market rebounds.

For students, universities, and companies like IDP Education, the next few years will be challenging. But with careful planning, flexibility, and a focus on new opportunities, there is hope for a brighter future when governments once again open their doors to international students.

Learn Today

IDP Education → A global company specializing in international student placement and co-owner of the IELTS exam.
IELTS → International English Language Testing System; a standardized English exam required for many student visas.
Student visa → An official permit allowing a foreign student to enter and study in a specific country.
EBIT → Earnings Before Interest and Taxes; a measure of a company’s profitability from operations.
Visa caps → Government-imposed limits on the number of student visas issued annually.

This Article in a Nutshell

IDP Education warns profits will fall due to tougher student visa rules in Australia, Canada, and the UK, impacting international student mobility and IELTS demand. The company is responding with cost cuts and digital expansion, anticipating a slow recovery linked to future visa policy relaxations worldwide.
— By VisaVerge.com