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The Australian

February 10, 2017 Friday

Australian Edition

Canada the big beneficiary as students turn away from Trump

BYLINE: JOHN ROSS, EDUCATION

SECTION: BUSINESS; Pg. 21

https://www.nexis.com/docview/getDocForCuiReq?lni=5MV4-SY01-F0JP-W1DJ&csi=280434&oc=0024
0&perma=trueLENGTH: 439 words

The Trump effect appears to have struck Australian-based international education giant IDP, as students
eschew the US for neighbouring Canada.
IDP Education's recruitment for US colleges and universities fell 29 per cent in the second half of 2017, after
rising by the same margin last financial year.
Meanwhile placements in Canada more than doubled, with volumes rising 105 per cent compared to a 59
per cent increase in 2015-16.
The figures add to indications that students are deserting -Donald Trump's US - with other English-speaking
countries including Australia the likely beneficiaries - and highlight the profits and pitfalls of international ed-
ucation.
IDP chief executive Andrew Barkla said policy developments in the US, particularly the tightening of visas for
Indians, had affected students' appetite to study there.
"If they can't get into the US, an obvious next choice is Canada," Mr Barkla said.
He said the trend illustrated the benefits of IDP's move years ago to recruit students for multiple destinations
rather than focusing on Australia.
"We can give them options, and help them regardless of what sociopolitical challenge one market might be
facing. It's giving us a chance to participate in the global market place, which de-risks the business in many
respects." IDP's results for the first half of this financial year, released yesterday, show student placements
are an increasing contributor to the bottom line as the company diversifies from its staple activity of English
language testing.
Placements contributed 28 per cent of the company's $189.8 million in revenue in the first half of 2016-17,
compared with 26 per cent last financial year and 22 per cent the year before. Total net profit rose 3.8 per
cent to $24.1m.
Revenue growth from IDP's flagship IELTS English language tests languished at 2 per cent in the first half of
2016-17, compared with 11 per cent for student placements. However, Mr Barkla said these figures were not
a true reflection of the growth, which was masked by currency fluctuations.
IDP is exposed to movements in the pound because it pays a quarterly fee to Cambridge English Language
Assessment, co-owner of IELTS, in sterling.
On "constant currency" measures, overall revenue growth this year was 9 per cent. While this is down on the
17 per cent rise last financial year, in real terms Mr Barkla said last year's purchase of Chinese recruitment
agency Promising had provided IDP with a one-off "growth kicker".In geographical terms, revenue from Aus-
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Canada the big beneficiary as students turn away from Trump The Australian February 10, 2017 Friday

tralasia fell 7 per cent in the first half, compared with an 8 per cent rise from Asia and 9 per cent from the rest
of the world.

LANGUAGE: ENGLISH

PUBLICATION-TYPE: Newspaper

JOURNAL-CODE: The Australian

SUBJECT: STUDENTS & STUDENT LIFE (90%); LANGUAGE & LANGUAGES (89%); COLLEGES &
UNIVERSITIES (77%); COMPANY PROFITS (77%); COMPANY EARNINGS (77%); US PRESIDENTIAL
CANDIDATES 2016 (73%); INTERNATIONAL TRADE (73%); EMPLOYMENT SERVICES (73%); CUR-
RENCIES (60%); EXECUTIVES (54%)

COMPANY: IDP EDUCATION AUSTRALIA LTD (58%)

TICKER: IEL (ASX) (58%)

INDUSTRY: NAICS611710 EDUCATIONAL SUPPORT SERVICES (58%)

PERSON: DONALD TRUMP (79%)

COUNTRY: CANADA (96%); UNITED STATES (94%); AUSTRALIA (93%)

LOAD-DATE: February 9, 2017

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