EDU Holdings Says Changes to Australia's Code of Practice for Education Providers Not Expected to Impact Student Demand for Courses, Shares Fall 10%

MT Newswires Live01-21

EDU Holdings (ASX:EDU) said that the recent changes to Australia's National Code of Practice for Providers of Education and Training to Overseas Students will not materially affect underlying student demand for its courses, according to a Wednesday Australian bourse filing.

The code of practice was amended to prohibit providers from paying commissions to education agents in relation to the recruitment of international students who have already commenced study with another provider, or transferring onshore students. The amendments take effect for relevant student acceptances from April 1.

Onshore transferring students recruited through education agents represent a material proportion of new student enrolments for EDU's higher education business, Ikon Institute.

The firm is adapting engagement models with education agents as a result of the regulatory changes, expanding direct marketing and recruitment for onshore international students, and increasing focus on recruiting offshore international students.

Its shares fell 10% in recent trading on Wednesday.

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