Core Viewpoint - The global study abroad market is facing significant challenges due to tightening visa policies and increasing uncertainty in major destination countries, leading to a downward revision of profit expectations by IDP Education for the fiscal year 2025 [1][2]. Group 1: Impact on IDP Education - IDP Education announced a projected decline of approximately 28%-30% in student placements and an 18%-20% drop in language test numbers for the fiscal year ending June 30, 2025 [1]. - Following the announcement, IDP's stock price plummeted by 48% on June 3, resulting in a loss of nearly 1 billion AUD, marking the largest drop in eight years [1]. - The company is reviewing long-term costs, productivity, and investment strategies to mitigate the impact of declining revenues [2]. Group 2: Changes in Study Abroad Policies - Major study destinations, including Canada, the US, the UK, and Australia, have implemented stricter immigration and study policies, contributing to a significant decrease in visa issuance [5][6][7]. - As of March 31, 2025, visa issuance for IDP's students in Canada and the US is expected to drop by 65% and 27%, respectively, while the UK and Australia are projected to see declines of 9% and 10% [5]. Group 3: Business Segments of IDP - IDP's primary business segments include student placement services, language testing (IELTS), and English education, with student placement being the largest revenue source [4]. - In the previous year, the number of students placed in major English-speaking countries increased by 17%, reaching a record 98,900, with a revenue growth of 27% in this segment [4]. Group 4: Market Dynamics in China and India - IDP is facing challenges in the Indian IELTS market, with a 55% decline in participation due to policy changes and increased competition, leading to a 19% drop in language testing revenue [9]. - The company plans to expand into the Chinese market, having ceased its partnership with the British Council to directly conduct IELTS exams in China [10].

Core Viewpoint - IDP Education, a major player in international education services and co-organizer of the IELTS exam, has announced a downward revision of its profit expectations for the fiscal year 2025 due to tightening visa policies and increasing uncertainties in key destination countries [1] Group 1: Financial Impact - IDP expects a decline of approximately 28%-30% in student placements and an 18%-20% drop in language exam numbers for the fiscal year ending June 30, 2025 [1] - Following the announcement, IDP's stock price plummeted by 48% on June 3, resulting in a loss of nearly 1 billion AUD, marking the largest drop in eight years [1] - As of the last trading day of the previous week, IDP's stock had decreased by 62%, closing at 3.59 AUD per share [1] Group 2: Business Operations - IDP's main business segments include student placement services, language testing (IELTS), and English education [4] - The student placement business, which generates the most revenue, saw a record number of students (98,900) placed in major English-speaking countries, reflecting a 17% year-on-year increase [4] - Revenue from the student placement business grew by 27%, contributing to an overall revenue increase of 6% for the company [4] Group 3: Policy Changes and Market Conditions - Major destination countries have tightened or adjusted their study and immigration policies, leading to significant declines in visa issuance for IDP's students [5][6] - Visa issuance for Canadian and U.S. students dropped by 65% and 27%, respectively, while the UK and Australia saw declines of 9% and 10% [5] - Australia has implemented measures to control immigration, including a "soft cap" on international student enrollments and increased visa fees [5] Group 4: Market Expansion - IDP is exploring opportunities in the Chinese market, having decided to independently conduct IELTS exams in mainland China after ending its partnership with the British Council [7][8] - The company reported a 55% decline in IELTS participation in India due to policy changes and increased competition, leading to a 19% drop in revenue from its English language testing business [7] - IDP remains optimistic about its long-term prospects in the Chinese market and is committed to fully opening IELTS in China [8]