The IDP Education Ltd (ASX: IEL) share price is in the red today, down 2.8%.
Shares in the S&P/ASX 200 Index (ASX: XJO) listed language testing and student placement provider closed yesterday trading for $30.39. Shares are currently trading for $29.54 apiece.
This comes following the release of the company's half-year financial results for the six months ending 31 December (1H FY23).
Here's what you need to know.
Image source: Getty Images
IDP share price falls despite profits and dividend boost
- Total revenue of $502 million, up 26% from 1H FY22
- Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 49% year on year to $144 million
- Net profit after tax (NPAT) of $82 million, up 62% from the $51 million reported in 1H FY22
- Interim dividend of 21 cents per share, compared to 13.5 cents per share paid in 1H FY22
What else happened during the half year?
Perhaps dragging on the IDP share price today was the 37% year on year increase in the company's overhead costs, which reached $167 million for the six months.
The 5% increase in global IELTS (English test) volumes may also be underwhelming to some investors today.
Still, IDP reported revenue growth across all of its product lines, with a 63% increase in its student placement revenue, driven by a student placement volume growth of 53%. Australian placements saw particularly strong growth, increasing by 128% from 1H FY22.
The six-month period also saw IDP Education complete its acquisition of Intake Education, a student placement agent operating across Africa and Asia.
What did management say?
Commenting on the solid half-year results that have failed to lift the IDP share price today, newly appointed CEO Tennealle O'Shannessy said:
In H1, as students and skilled workers travelled to key IDP destinations in record numbers, IDP teams were by their side with innovations to help them achieve their goals…
While all our destination countries performed well, the reopening of Australia's borders in late 2021 triggered a strong recovery, indicating the underlying attractiveness of Australia as a study destination.
What's next?
Looking at what could impact the IDP share price in the months ahead, O'Shannessy said, "With an unwavering focus on our customers, and a clear strategy of combining our trusted human expertise with unrivalled technology systems, IDP is well-positioned to strengthen its industry leadership throughout 2023."
IDP share price snapshot
Despite today's dip, the IDP share price, pictured below, remains a strong performer, up 9% so far in 2023.
