The All Ordinaries Index (ASX: XAO) is up 0.7% today, but it's certainly not getting any help from these two ASX All Ords shares.
The SkyCity Entertainment Group Ltd (ASX: SKC) share price is trailing the pack.
Shares in the New Zealand-based casino and entertainment company closed yesterday trading for $1.605 a share. In earlier trade, shares were swapping hands for $1.27, down a precipitous 20.6%. After some likely bargain hunting, shares are currently trading for $1.327, down 17.3%.
Also dragging on the benchmark is IDP Education Ltd (ASX: IEL).
Shares in the language testing and student placement provider closed yesterday at $15.69. In earlier trade shares were trading for $13.63, down 13.1%. Like SkyCity, the IDP Education share price has recouped some of those losses, currently down 6.1% at $14.74 a share.
Here's why the ASX All Ords shares are under selling pressure.
ASX All Ords share tanks on international student hit
First up, IDP Education.
Investors are bidding down the ASX All Ords share after the company released a regulatory and market update.
Management noted that under a more restrictive policy environment instituted by governments in the company's key destination countries of Australia, the United Kingdom and Canada, the size of its international student market is declining. They said, "This has negatively impacted IELTS testing and student placement volumes during H2 FY 2024."
For FY 2024, IDP now expects a 15% to 20% increase in student placement volumes accompanied by a 15% to 20% decline in IELTS volumes compared to the prior year.
With the company forecasting a 20% to 25% decline in the size of the international education market under the revised policies, IDP said it will implement a cost reduction program to align expenses to the near-term revenue outlook.
The ASX All Ords share expects adjusted earnings before interest and taxes (EBIT) for FY 2024 to be similar to FY 2023.
Management said they remains confident in the long-term growth drivers for the industry.
SkyCity share price plunges on earnings downgrade
Moving on to the second ASX All Ords share dragging on the benchmark today, SkyCity stock is under heavy selling pressure after the company downgraded its FY 2024 guidance.
The new earnings guidance is for underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) in the range of NZ$280 million to NZ$285 million. That's down from prior expectations of full-year EBITDA of NZ$290 million to NZ$310 million.
FY 2024 guidance for underlying net profit after tax (NPAT) was cut to between NZ$120 million and NZ$125 million. That's down from the previous NZ$125 million to NZ$135 million.
Looking further ahead, the ASX All Ords share could be under extra pressure with management forecasting that FY 2025 EBITDA will come in between NZ$250 million and NZ$270 million.
On the dividend front, the SkyCity board anticipates reinstating dividends in FY 2026, following their suspension for 2H FY 2024.
