IDP Education stocks up 30% on strong H1
IDP Education's stocks have soared by nearly 30 per cent following strong first-half profit growth from English language teaching and testing, as well as student placement.
The Melbourne-headquartered firm also moved to downplay the effect of coronavirus on its business, stating that though the ultimate impact of the outbreak remains unclear, it is not currently having a material impact on finances.
The student services and education company on Wednesday reported a 42 per cent increase in net profit to $57.7 million for the six months to December 31, while revenue grew by 25 per cent $378.97 million.
The company said the strong result was driven by a 21 per cent increase in English language testing revenue, with International English Language Testing System volumes increasing by 11 per cent in the half.
IDP will pay an increased interim dividend of 16.5 cents per share, partially franked.
Shares in the company surged during mornign trade and had jumped by $4.76, or 28.53 per cent, to $21.44 by 1223 AEST.
The company earlier grazed a new record high of $22.
In Asia, the performance of IDP's Indian operations continued to be a highlight for the half, with strong growth across both English language testing and student placement.
China also recorded solid growth in revenue and student placement volumes to Australia and the UK.
Strong volume growth in the UK and Canada was a major contributor to multi-destination revenue growth of 63 per cent, and underpinned student placement revenue growth of 35 per cent.
English language teaching revenue grew 23 per cent with both Cambodia and Vietnam schools performing well while digital marketing and events revenue grew 10 per cent.
Addressing the coronavirus threat, chief executive and managing director Andrew Barkla said the business was being managed so that it is not currently having a material impact on the financial performance.
"The longer-term structural drivers remain, regardless of any timing-related impact from the novel coronavirus," Mr Barkla said.
"Our current focus is providing our students with the support they require to continue to achieve their study goals."
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