Strong growth in new student enrolments for EDU (ASX:EDU)

EDU Holdings Limited (ASX:EDU) has reported a significant increase in new student enrolments for Trimester 3, 2024 at Ikon Institute, its higher education business. The company recorded 930 new student enrolments, marking a substantial 363% rise from the previous corresponding period (PCP). Total student enrolments for the trimester also saw a notable increase, reaching 2,492, which represents a 161% surge from the PCP.

Executive Commentary on Enrolment Growth and Government Regulations

The Board is actively engaging with Government and the Department of Education concerning the impact of the capping regime and Ikon's indicative 2025 cap, highlighting the strong alignment of Ikon's course offering with occupations that have national critical skills shortages. Notwithstanding, the Board believes that Ikon's indicative 2025 cap is unlikely to change and accordingly is prioritising development of plans to mitigate anticipated operational and financial implications. The Company will continue to provide updates as new information comes to hand. Ikon's domestic student commencements are not affected by these proposed changes. Ikon continues to advance new course development initiatives, including the launch of two new Masters Degrees in Trimester 1, 2025, targeting domestic students.

Summary of EDU's Enrolment Growth and Future Plans

EDU Holdings Limited (ASX:EDU) has witnessed remarkable growth in new student enrolments for Trimester 3, 2024 at Ikon Institute, driven primarily by a substantial increase in international student commencements. However, the company anticipates a significant impact on enrolment growth and total student numbers from 2025 due to the Government's proposed capping regime, which will limit international student enrolments. Despite the potential challenges, EDU remains focused on mitigating the anticipated operational and financial implications by actively engaging with relevant authorities and prioritizing the development of plans. Additionally, the company is set to launch two new Masters Degrees in Trimester 1, 2025, targeting domestic students, as part of its ongoing course development initiatives.