IDP Education share price sinks despite 55% dividend increase

The six month period saw IDP Education complete its acquisition of Intake Education, a student placement agent operating across Africa and Asia.

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The IDP Education Ltd (ASX: IEL) share price is in the red today, down 2.8%.

Shares in the S&P/ASX 200 Index (ASX: XJO) listed language testing and student placement provider closed yesterday trading for $30.39. Shares are currently trading for $29.54 apiece.

This comes following the release of the company's half-year financial results for the six months ending 31 December (1H FY23).

Here's what you need to know.

Perhaps dragging on the IDP share price today was the 37% year on year increase in the company's overhead costs, which reached $167 million for the six months.

The 5% increase in global IELTS (English test) volumes may also be underwhelming to some investors today.

Still, IDP reported revenue growth across all of its product lines, with a 63% increase in its student placement revenue, driven by a student placement volume growth of 53%. Australian placements saw particularly strong growth, increasing by 128% from 1H FY22.

The six-month period also saw IDP Education complete its acquisition of Intake Education, a student placement agent operating across Africa and Asia.

Commenting on the solid half-year results that have failed to lift the IDP share price today, newly appointed CEO Tennealle O’Shannessy said:

In H1, as students and skilled workers travelled to key IDP destinations in record numbers, IDP teams were by their side with innovations to help them achieve their goals…

While all our destination countries performed well, the reopening of Australia's borders in late 2021 triggered a strong recovery, indicating the underlying attractiveness of Australia as a study destination.

Looking at what could impact the IDP share price in the months ahead, O’Shannessy said, "With an unwavering focus on our customers, and a clear strategy of combining our trusted human expertise with unrivalled technology systems, IDP is well-positioned to strengthen its industry leadership throughout 2023."

Despite today's dip, the IDP share price, pictured below, remains a strong performer, up 9% so far in 2023.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Idp Education. The Motley Fool Australia has recommended Idp Education. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.