The Idp Education Ltd (ASX: IEL) share price rocketed as much as 31.89% higher in early trade this morning following the release of the company's first-half results. At the time of writing, shares are trading 23.14% higher.
IDP Education reported revenue of $379 million, a 25% increase over the same period in FY19. Earnings before interest and tax (EBIT) increased 49% over the prior corresponding period (pcp) to reach $86.9 million.
Chief Executive Officer and Managing Director Andrew Barkla said the positive results reinforced the company's commitment to its digital strategy and vision.
"Our organisation has pivoted to focus deeply on the experience of our customers, which is delivering strong returns across all business lines. Importantly our global platform is exceeding our expectations in terms of pipeline growth and conversion," he said.
IDP Education's business
IDP Education provides international education services assisting international students to study in English speaking countries. The company is also a co-owner of IELTS, an English language test used for study, migration and work opportunities.
IDP Education operates 9 English language teaching campuses across South East Asia and acquired Hotcourses Group, a course search database and student engagement platform, in 2017.
First-half results
In H1 FY20, adjusted earnings per share increased by 41% to 23.4 cents. An interim dividend of 16.5 cents per share was declared, franked at 17%.
IDP Education's student placement business saw a 30% increase in volume, assisted by higher conversions in the sales cycle. Multi-destination markets recorded volume growth of 52%.
IELTS volumes were up 11% for the period and 37 new computer-delivered IELTS centres were opened, taking the total number to 167 centres across the IDP network. The roll-out of computer-delivered testing has been well received with strong adoption rates in key markets.
The company's English Language Teaching business recorded a volume increase of 15% with the Cambodian operations continuing to strengthen its position as a market leader. The Digital Marketing and Events business delivered an 11% increase in revenue over the pcp, with a shift in contract mix towards longer-term agreements.
Coronavirus impact muted
IDP Education advised that the disruptions caused by the coronavirus were being managed such that it was not currently having a material impact on financial performance.
The company, however, warned that the situation was evolving and the ultimate impact remains uncertain.
