Total Enrolments at EDU Rise 35% While New Student Intake Drops 25%
EDU Holdings Limited reports a robust 35% increase in total student enrolments for Term 1, 2025, despite a notable decline in new student intake and ongoing regulatory challenges.
- Total student enrolments up 35% year-on-year to 1,655
- New student enrolments down 25% compared to previous corresponding period
- Regulatory changes impacting offshore student visa processing
- ALG’s indicative cap for 2025 set at 447 commencements
- Continued alignment of programs with Australia's skills needs
Strong Growth Despite Sector Challenges
EDU Holdings Limited (ASX: EDU), a prominent player in Australia's tertiary education sector, has announced a significant 35% increase in total student enrolments for Term 1, 2025 within its vocational education arm, Australian Learning Group (ALG). This growth, reaching 1,655 enrolments, marks a 3% rise over the previous term and underscores sustained demand for vocational education programs aligned with national skills priorities.
However, this encouraging headline masks a more nuanced picture. New student enrolments (NSE) for the term declined by 25% compared to the previous corresponding period, falling to 219 from 292. This decline aligns with broader sector trends, particularly the tightening of visa grant rates affecting international vocational students, a key demographic for ALG.
Regulatory Environment and Visa Processing Impact
The regulatory landscape remains a critical factor shaping EDU’s enrolment dynamics. The anticipated Education Services for Overseas Students Amendment (Quality and Integrity) Bill 2024, which was expected to take effect from January 1, 2025, was not enacted as planned. Instead, the government introduced Ministerial Direction 111 (MD111), which effectively implements the indicative provider caps initially proposed under the ESOS Bill.
ALG’s cap for 2025 is set at 447 commencements, with a prioritisation mechanism favouring offshore student visa applications up to 80% of this cap. This prioritisation aims to streamline visa processing but also imposes a ceiling on new enrolments, potentially constraining growth in the short term. Once the prioritisation threshold is met, visa applications revert to standard processing priority, which may slow intake further.
Strategic Positioning and Future Outlook
Despite these headwinds, EDU’s ability to grow total enrolments reflects strong retention and ongoing engagement with existing students, as well as the relevance of its course offerings to Australia’s evolving labour market needs. The company’s focus on vocational education positions it well to benefit from government initiatives aimed at addressing skills shortages.
Looking ahead, EDU plans to continue reporting enrolment updates across its two main education businesses, ALG and Ikon Institute, providing investors with ongoing visibility into performance trends. The next ALG enrolment update is scheduled for early May 2025, which will be closely watched for indications of how the regulatory environment and visa processing changes continue to influence student intake.
Overall, EDU Holdings’ Term 1 enrolment results highlight a company navigating complex regulatory and market conditions with resilience, though the decline in new student enrolments signals caution for future growth trajectories.
Bottom Line?
EDU’s enrolment surge signals resilience, but visa caps and sector trends may temper growth ahead.
Questions in the middle?
- How will EDU adapt if visa processing delays persist beyond 2025?
- Can EDU offset new enrolment declines through higher retention or alternative markets?
- What impact will the delayed ESOS Bill enactment have on long-term regulatory certainty?
