IDP Education Limited (ASX: IEL) announced its results for the first half of FY20 (ending December 31, 2019) shortly before market open this morning. IDP Education is an international education organization offering student placement in Australia, New Zealand, the USA, UK, Ireland the Canada.
The company reported total revenue of $379 million, a 35 per cent increase when compared to H1 FY19. Furthermore, earnings before interest and tax (EBIT) came in at $86.9 million, representing a 49 per cent increase when compared to H1 FY19. This culminated in 42 per cent growth in NPATA when compared to H1 FY19.
The company attributes these strong growth numbers to the successful implementation of their growth strategy, vision and digital plan. Chief Executive Officer and Managing Director Andrew Barkla claims that:
our organization has pivoted to focus deeply on the experience of our customers, which is delivering strong returns across all business lines.
IEL has experienced strong margin improvement, 30 per cent volume growth in the student placement business and product innovation in their digital campus space. This has all culminated in an adjusted EPS of 23.4 cents, a 41 per cent increase when compared to H1 FY19.
The company also announced it will be delivering a 16.5 cent per share dividend (equating to a 1% yield for the period), franked at 17%.
The market obviously reacted favorably to these strong results, with the share price spiking 28%, making it easily the best performer in the ASX200 today. The stock now trades at around $21.40 per share, making its one year return a tick over 45%. The stock has provided nearly a 530% return since floating in late 2015.
This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)
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