Overview of EDU's update on international student commencement caps

EDU Holdings Limited (ASX:EDU) has provided an update on the proposed introduction of the Australian Government's capping regime for new international student commencements from 2025. The National Planning Level (NPL) for 2025 has been set at 270,000 international student commencements, with 175,000 allocated to the higher education sector and 95,000 to the vocational education sector. Australian Learning Group (ALG), a vocational education business under EDU, has received notification of its provider limit (cap) for calendar 2025, proposed at 447 new international student commencements, representing a 51% reduction from 2023 commencements and an approximately 57% reduction from projected 2024 commencements.

Executive commentary on the impact of the capping regime

The imposition of the 2025 cap will likely lead to a gradual decline in total student enrolments in 2025 compared to 2024, benefiting from ALG's 2-year average study duration and progressive growth during 2024. The longer-term impact of the capping regime on EDU's businesses remains uncertain, and the Board is prioritising the development of plans to effectively manage any anticipated operational and financial implications. The Company will continue to provide updates as new information comes to hand.

Summary of EDU's update and outlook

EDU Holdings Limited has provided an update on the proposed international student commencement caps, with ALG facing a significant reduction in new international student commencements for 2025. The Company acknowledges the potential decline in total student enrolments and the uncertainty surrounding the longer-term impact of the capping regime on its businesses. EDU's Board is focused on developing plans to manage any anticipated operational and financial implications and will continue to provide further updates as new information becomes available.