IDP Warns of Decline in Student Volumes Amid Revenue Drop
IDP reports a 9% fall in revenue and a 27% decline in student placement numbers, but remains optimistic about its future prospects
The international education sector is facing significant challenges, with IDP, one of the co-owners of IELTS, reporting a substantial decline in revenue and student volumes. The company's revenue fell by 9% to AUD $795.4m for FY26, while student placement numbers plummeted by 27%. English language testing volumes also decreased by 8%, although language teaching volumes saw a modest increase of 1%.
## Current Performance IDP's chief executive and managing director, Tennealle O'Shannessy, attributed the decline to a dynamic operating environment, but noted that the company has managed to offset some of the losses by earning more from each student and test. The company's focus on profitable revenue and commitment to quality and yield have helped to mitigate the impact of the decline in volumes.
## Cost Reduction and Restructuring As part of its efforts to reduce costs, IDP cut around 1,250 roles, or 20% of its workforce, during the year. The company also reduced its IELTS testing network from around 1,500 venues to fewer than 600. These measures resulted in cost savings of $32m, exceeding the company's target of $25m. IDP plans to reduce costs by a further $15m in FY27.
## Future Prospects Despite the challenges, IDP remains optimistic about its future prospects. The company has continued to see strong levels of trust among students, with over 90% of surveyed students saying they trust or highly trust the company. IDP's student Net Promoter Score also remains above 70. The company is investing in technology and AI-supported counselling, which is helping students find better matches with courses and universities. O'Shannessy believes that the changing market could create opportunities for IDP, as universities place increasing importance on student quality, compliance, and enrolment certainty.
The company's expansion into new markets, including Malaysia and the UAE, and the opening of 13 new IELTS centres in China, are also expected to drive growth. The following table summarizes IDP's performance in FY26: | Category | FY26 Performance | | --- | --- | | Revenue | 9% decline to AUD $795.4m | | Student Placement Numbers | 27% decline | | English Language Testing Volumes | 8% decline | | Language Teaching Volumes | 1% increase | | Cost Savings | $32m | IDP's market-leading position, trusted brands, and longstanding university partnerships are expected to position the company strongly for the future, enabling it to deepen its relationships with students and university partners, capture more value across the student placement journey, and drive sustainable growth.
